Reference no: EM13863638
Conan Corporation purchased land and contracted with a developer to construct an office building. Conan Corporation also engaged other contractors for fencing, paving, lighting, and landscaping.
Using the following data, calculate the cost of the land, the building, and the land improvements.
Purchased land for $100,000.
Paid $2,000 for seller’s back property taxes.
Paid a builder $225,000 to design and build the office building.
Paid an excavation company $6,000 to grade and clear the land to make it suitable for building purposes.
Paid a landscaping company $6,000 for trees and shrubs.
Paid a lighting contractor $10,000 for outside lighting around the parking area and sidewalks.
Paid $15,000 to have the parking lot paved.
Paid a fence builder $12,000 to construct a security fence around the property
|
Double-declining-balance method of depreciation
: Garbo Company acquired equipment on January 1, 2013 for $70,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-y..
|
|
Cost control strategy be company-wide
: What can the purchasing manager of an organization do to control costs of raw materials? And the production manager? Or should this cost control strategy be company-wide? What are some management tools that we can use to encourage everyone to think l..
|
|
Prepare the journal entry to amortize patent at year end
: Tandem Industries purchased a patent on January 1, 2014, for $2,000,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2014, the company paid..
|
|
Prepare journal entries to record disposal of equipment
: Canton Industries acquired equipment at a cost of $126,000 and a book value of $42,000. Prepare the journal entries to record the disposal of the equipment under the following independent assumptions.
|
|
Contractors for fencing-paving-lighting and landscaping
: Conan Corporation purchased land and contracted with a developer to construct an office building. Conan Corporation also engaged other contractors for fencing, paving, lighting, and landscaping.
|
|
What would be total variable costs for this new level
: An Internet gourmet foods company, “Yumminess”, will be including “Chocolate Attack Brownies” (CAB) in their online catalog. What would be total variable costs for this new level? What would be total fixed costs for this new level?
|
|
Describe characteristic of process costing
: Which of the following does not describe a characteristic of process costing? All units of production receive precisely the same amount of material, labor, and overhead.
|
|
Formula for computing predetermined overhead rate
: A credit balance in the Manufacturing Overhead account at the end of an interim month means that: The balance should be reported as a prepaid expense in the monthly balance sheet. The formula for computing a predetermined overhead rate is: A producti..
|
|
Manufacturing costs are typically classified
: Manufacturing costs are typically classified as: One major purpose of the statement of cash flows is to provide information about: In the statement of cash flows, the activities that affect cash flows are listed in the following order:
|