# The following costs were incurred in the most recent year: (a) Paid \$20,000 to purchase a piece of equipment. In

## Question:

The following costs were incurred in the most recent year: (a) Paid \$20,000 to purchase a piece of equipment. In addition, paid \$1,000 to have the equipment shipped to and installed in its final location. Spent \$1,750 to have the equipment tested before beginning its production use. Paid \$2,000 for lubrication and normal maintenance during the first year of operation of the equipment.
(b) Paid \$100,000 to buy a piece of land. Also paid \$10,000 to construct a parking lot and sidewalks.
(c) Paid \$50,000 to buy another piece of land. Then paid \$10,000 to have an old building demolished and have the land cleared. Paid \$125,000 to have a building constructed.
Compute the total cost that should be reported in each of the following categories:
1. Land
2. Buildings
3. Equipment
4. Land Improvements

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Related Book For

## Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

Question Details
Chapter # 10
Section: Practice Exercises
Problem: 1
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Question Posted: January 28, 2012 05:52:27