Question

Belvidere Systems purchased land, paying $60,000 cash as a down payment and signing a $100,000 note payable for the balance. In addition, Belvidere Systems paid delinquent property tax of $3,000, tle insurance costing $3,500, and a $12,100 charge for leveling the land and removing an unwanted building. The company constructed of $900,000. It also paid $51,000 for a fence around the property, $12,000 for the company an office building on the land at a cost the company sign near the entrance, and $5,000 for special lighting of the grounds Requirements 1. Determine the cost of the company's land, land improvements, and building. 2. Which of the assets will Belvidere depreciate? Noth n ob Requirement 1. Determine the cost of the company's land, land improvements, and building The cost of the land is $ The total cost of the land improvements is The cost of the building is $ Requirement 2. Which of the assets will Belvidere depreciate? Belvidere will depreciate S

Answer 1

Cost of land:
Purchase cost of land (60000+100000)				160000
Property tax				3000
Title insurance				3500
Levelling of land cost				12100
Cost of land:				178600
Cost of building (Cost of construction):				900000
Cost of Land improvement
Cost of fence				51000
Signage cost				12000
Special lighting cost				5000
Cost of Land improvement				68000
Answer:
The Building and land improvements.