Question

AaBbUCU abe x x A - aby - A - АаВЬСС АавьСcD Аавьсс Аав Аавьсel A= 11 Caption 1 Heading 1 Heading 2 1 Normal Title 1 No Spac... H Font Paragraph Styles 1 2. 3 4 ! + 5 1 6 - + John Smith purchased a land and contracted with a builder to build an office building on the property. He also engaged other contractors for lighting, fencing, paving, etc. Based on the following transactions, determine the total costs allocated to the land, land improvements abd buildings accounts. (use the schedule provided) eoeco Purchased land for $125,000. Paid a contractor $150,000 to design and build the office building. Paid a demolition company $20,000 to remove an old structure on the land. Paid $15,000 in arrears taxes on the land. Paid $20,000 for fencing Paid $10,000 for paving. Paid an electrical contractor $15,000 for outdoor lighting

Answer 1

Answer:

Total Cost allocated to Land=Purchase Price(125,000)+Demolition(20,000)+Arrears in taxes on land(15,000)

=$160,000

Total Cost allocated to Land Improvements=Fencing (20,000)+Paving(10,000) +Outdoor electricals and lighting(15,000)

=$45,000

Total Cost Allocated to building=designing and build office building(150,000)

=$150,000

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