Question

Assume Martin's Moving & Storage Ltd. (MMS) of Regina, Saskatchewan, incurred the following costs in acquiring land, making land improvements, and constructing and furnishing its own storage warehouse: (Click the icon to view the costs of items a. to i.) (Click the icon to view the costs of items j. to q.) Requirements Requirement 1. Show how to account for each of MMS's costs by listing the cost under the correct account. Determine the total cost of each asset. Start with items a, through i; next, enter itemsj. through q; and lastly calculate the totals for each asset category. (Hold all decimals for interim calculations. Round your final answers to the nearest dollar. Leave any unused cells blank.) Land Improvements Office Building Item Land Warehouse Furniture Enter any number in the edit fields and then click Check Answer. D M A R E... League of L Course Ho... 9 Do Homew... L League of L. A

Answer 1

Item	Land	Land Improvements	Warehouse	Office Building	Furniture
a.	261240			63760
b.	10600
c.		18770
d.	1500
e.	7900
f.		3500
g.			930
h.			21910
i.			825000

Working:

a. Total fair value of land and building = $295000 + $72000 = $367000

Land = $325000 x $295000/$367000 = 261240

Building = $325000 x $72000/$367000 = $63760