Pina Co. purchased land as a factory site for $480,000. The
process of tearing down two old buildings on the site and
constructing the factory required 6 months.
The company paid $50,400 to raze the old buildings and sold
salvaged lumber and brick for $7,560. Legal fees of $2,220 were
paid for title investigation and drawing the purchase contract.
Pinapaid $2,640 to an engineering firm for a land survey, and
$81,600 for drawing the factory plans. The land survey had to be
made before definitive plans could be drawn. Title insurance on the
property cost $1,800, and a liability insurance premium paid during
construction was $1,080. The contractor’s charge for construction
was $3,288,000. The company paid the contractor in two
installments: $1,440,000 at the end of 3 months and $1,848,000 upon
completion. Interest costs of $204,000 were incurred to finance the
construction.
Determine the cost of the land and the cost of the building as they
should be recorded on the books of Pina Co. Assume that the land
survey was for the building.
Cost of the Land |
$enter a dollar amount |
|
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Cost of the Building |
$enter a dollar amount |
Pina Co. purchased land as a factory site for $480,000. The process of tearing down two...
Bonita Co. purchased land as a factory site for $512,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $53,760 to raze the old buildings and sold salvaged lumber and brick for $8,064. Legal fees of $2,368 were paid for title Investigation and drawing the purchase contract. Bonita paid $2,816 to an engineering form for a land survey, and $87,040 for drawing the factory plans. The land survey...
Exercise 10-02 Pina Co. purchased land as a factory site for $552,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $57,960 to raze the old buildings and sold salvaged lumber and brick for $8,694. Legal fees of $2,553 were paid for title investigation and drawing the purchase contract. Pina paid $3,036 to an engineering firm for a land survey, and $93,840 for drawing the factory plans. The...
Oriole Co. purchased land as a factory site for $408,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,840 to raze the old buildings and sold salvaged lumber and brick for $6,426. Legal fees of $1,887 were paid for title investigation and drawing the purchase contract. Oriole paid $2,244 to an engineering firm for a land survey, and $69,360 for drawing the factory plans. The land survey...
Larkspur Co. purchased land as a factory site for $568,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $59,640 to raze the old buildings and sold salvaged lumber and brick for $8,946. Legal fees of $2,627 were paid for title investigation and drawing the purchase contract. Larkspur paid $3,124 to an engineering firm for a land survey, and $96,560 for drawing the factory plans. The land survey...
Teal Co. purchased land as a factory site for $488,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $51,240 to raze the old buildings and sold salvaged lumber and brick for $7,686. Legal fees of $2,257 were paid for title investigation and drawing the purchase contract. Teal paid $2,684 to an engineering firm for a land survey, and $82,960 for drawing the factory plans. The land survey...
Metlock Co. purchased land as a factory site for $472,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $49,560 to raze the old buildings and sold salvaged lumber and brick for $7,434. Legal fees of $2,183 were paid for title investigation and drawing the purchase contract. Metlock paid $2,596 to an engineering firm for a land survey, and $80,240 for drawing the factory plans. The land survey...
Culver Co. purchased land as a factory site for $600,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $63,000 to raze the old buildings and sold salvaged lumber and brick for $9,450. Legal fees of $2,775 were paid for title investigation and drawing the purchase contract. Culver paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey...
Sandhill Co. purchased land as a factory site for $496,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $52,080 to raze the old buildings and sold salvaged lumber and brick for $7,812. Legal fees of $2,294 were paid for title investigation and drawing the purchase contract. Sandhill paid $2,728 to an engineering firm for a land survey, and $84,320 for drawing the factory plans. The land survey...
Cheyenne Co. purchased land as a factory site for $456,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $47,880 to raze the old buildings and sold salvaged lumber and brick for $7,182. Legal fees of $2,109 were paid for title investigation and drawing the purchase contract. Cheyenne paid $2,508 to an engineering firm for a land survey, and $77,520 for drawing the factory plans. The land survey...
Sarasota Co. purchased land as a factory site for $600,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $63,000 to raze the old buildings and sold salvaged lumber and brick for $9,450. Legal fees of $2,775 were paid for title investigation and drawing the purchase contract.Sarasota paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey had...