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Problems Probtem 9-1A Real estate costs LO1 excel CHECK FIGURE: 2, Land $3,810,880 On March 31, 2017, Kornet Investment Advisors paid $4,480,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,026,080. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $652,960. Without considering the buildings or improve- ments, the tract of land was estimated to have a value of $2,984,960. Kornet incurred the following addi- tional costs: 676,160 267,520 3,230,400 252,800 Cost of additional landscaping Cost of new land improvements near Building 2 (Land Improvements 2).. equired 1. Prepare a schedule having the following column headings: Land, Building 2, Building 3, Land Im- provements 1, and Land Improvements 2. Allocate the costs incurred by Kornet to the appropriate columns and total each column. Prepare a single journal entry dated March 31, 2017, to record all the incurred costs, assuming they were paid in cash on that date.

Answer 1

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