Question

22. Robertine purchased a three-acre tract of land for a building site for $400,000. On the land was a building with an appraised value of $129,000. The company demolished the old building at a cost of $12.600, but was able to sell scrap from the building for $1.500. The cost of title Insurance was 5870 and attomey fees for reviewing the contract were 5120 Property taxes paid were 2.200, of which $300 covered the period subsequent to the purchase date. The capitalized cost of the land is A $272170 R $414,190 C. 5415.790 D. $416,090 23. The Mateo Corporation's inventory December 31, 2021, was $125,000 based on a physical count priced at cost, and before any necessary adjustment for the following: • Merchandise costing $30,000, shipped a shipping point from a vendor on December 30, 2001, received on January 5, 2022 Merchandise costing 522.000, shipped toh destination from a vendor on December 28, 2021, was received on Jan . 2032 Merchandise costing S8,000 wa shipped to a cu r a destination on December 28. arrived at the customer's location on January 6, 2032 • Merchandise costing $12,000 was being held on consignment by Traynor Company What amount should Mateo Corporation report as inventory in its December 31, 2021. balance sheet? A $167.00 57.000 CS000 D 1000 Page 12 of 13

Answer 1

Answer 22:-

Details	Amount. (in$)
Purchase price	400000
Add: Demolition of building	12600
Add: Title insurance	870
Add: Attorney Fees	420
Add: property taxes covered during the period ($2200-$300)	1900
Total	$415790
Less: scrap sale from the building	1600
Capitalized cost of the land	$414190

So, the correct option is B . $414190