assets | initial valuation |
Land (1250000+85000+175000+47000) | 1,557,000 |
Building (55000+3300000) | 3,355,000 |
Equipment (885,000+37,000+17,000+7,500) | 946,500 |
land improvements (50,000+5,500) | 55,500 |
Fork lifts (21,000 + 75,000*(1/(1.06)^1 present value)=>(21,000+70,755) | 91,755 |
Prepaid insurance | 29,000 |
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a...
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Purchase price of the land $ 1,330,000 Demolition and removal of old building 93,000 Clearing and grading the land...
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory. (EV of $1. PV of $1. EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Purchase price of the land Demolition and removal of old building Clearing and grading the land before construction Various...
Terrabyte Corporation purchased land as a factory site and contracted with Mordor Construction to construct a factory. Terrabyte made the following expenditures related to the acquisition of the land, building, and equipment to equip the factory: Purchase price of the land Demolition and removal of old building Clearing and grading the land before construction Various closing costs in connection with acquiring the land Architect's fee for the plans for the new building Payments to Mordor for building construction Equipment purchased...
On March 1, 2021, Beldon Corporation purchased land as a factory site for $63,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2021) Construction costs Interest on construction loan $ 5,500 15,000 3,500...
On March 1, 2021, Beldon Corporation purchased land as a factory site for $74,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2021) Construction costs Interest on construction loan $ 6,000 13,000 2,500...
On February 1, 2020, Sheridan Company purchased a parcel of land as a factory site for $324000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19300 Architect's fees 35700 Legal fees for title investigation and purchase contract 4100 Construction costs 1387000 (Salvaged materials resulting from demolition were sold for $10300.) Sheridan should record...
On March 1, 2021, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2021) Construction costs Interest on construction loan $ 4,000 12,000 2,000...
On February 1, 2013, Edwards Corporation purchased a parcel of land as a factory site for $250,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2013. Edwards has no debt. Costs incurred during this period were: Demolition of old building $6,000 Sale of salvaged materials from the demolition 1,000 Architects’ fees 12,000 Legal fees for land purchase 2,000 Construction costs 600,000 Required: At what amount should Edwards...
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory EV of $1. PV of $1. EVA of S. PVA of $1. FVAD of 51 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Purchase price of the land Demolition and removal of old building Clearing and grading the land before construction Various...
On March 1, 2021, Beldon Corporation purchased land as a factory site for $71,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building $ 9,500 Architect’s fees (for new building) 10,000 Legal fees for title investigation of land 7,500 Property taxes on land (for period beginning March 1, 2021) 4,100 Construction costs 610,000 Interest on...