Question

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search b. Cost of real estate acquired as a plant site: Land $3,600 720,000 60,000 23,400 15,000 75,000 10,000 3,400* 18,000 8,400 800,000* 13,400 3,000 2,000 14,000 21,600 Building (to be demolished) c. Finder's fee paid to real estate agency d. Delinquent real estate taxes on property, assumed by purchaser e. Architect's and engineer's fees for plans for new building f. Cost of removing building purchased with land in (b) g Proceeds from sale of salvage materials from old building h. Cost of filling and grading land i. Premium on one-year insurance policy during construction j. Money borrowed to pay building contractor k. Special assessment paid to city for extension of water main to the property Cost of repairing windstorm damage during construction Cost of repairing vandalism damage during construction Cost of trees and shrubbery planted Cost of paving parking lot to be used by customers m. n. o.

Answer 1

		Land	Land Improvements	Building	Other Accounts
a.	Fee paid to attorney for title search	3600
b.	Cost of real estate acquired as a plant site	780000
c.	Finder's fee paid to real estate agency	23400
d.	Delinquent real estate taxes on property, assumed by purchaser	15000
e.	Architect's and engineer's fees for plans for new building			75000
f.	Cost of removing building purchased with land in (b)	10000
g.	Proceeds from sale of salvage materials from old building	-3400
h.	Cost of filling and grading land	18000
i.	Premium on one-year insurance policy during construction			8400
j.	Money borrowed to pay building contractor				-800000
k.	Special assessment paid to city for extension of water main to the property	13400
l.	Cost of repairing windstorm damage during construction				3000
m.	Cost of repairing vandalism damage during construction				2000
n.	Cost of trees and shrubbery planted		14000
o.	Cost of paving parking lot to be used by customers		21600
p.	Interest incurred on building loan during construction			40000
q.	Proceeds from insurance company for windstorm and vandalism damage				-4500
r.	Payment to building contractor for new building			800000
s.	Refund of premium on insurance policy (i) canceled after 10 months			-1400