SOLUTION
1. Cost of the Land-
Particulars | Amount ($) |
Land | 488,000 |
Add: Razing | 51,240 |
Add: Legal fees | 2,257 |
Add: Insurance | 1,830 |
Less: Salvage | (7,686) |
Cost of the Land | 535,641 |
2. Cost of the building-
Particulars | Amount ($) |
Survey | 2,684 |
Add: Drawing the factory plans | 82,960 |
Liability insurance premium paid during construction | 1,098 |
Contractor's charge for construction | 3,342,800 |
Interest cost | 207,400 |
Cost of the building | 3,636,942 |
Coronado Co. purchased land as a factory site for $488,000. The process of tearing down two...
Flounder 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. Flounder paid $2,684 to an engineering firm for a land survey, and $82,960 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...
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...
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...
Sweet 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. Sweet paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey...
Shamrock Co. purchased land as a factory site for $432,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $45,360 to raze the old buildings and sold salvaged lumber and brick for $6,804. Legal fees of $1.998 were paid for title investigation and drawing the purchase contract. Shamrock paid $2,376 to an engineering firm for a land survey, and $73.440 for drawing the factory plans. The land survey...
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...
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...