Solution-Determine how much should be recorded as cost of

Determine how much should be recorded as cost of the land

Assignment Help Accounting Basics

Reference no: EM132686555

February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $122,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were:

Item Amount

Demolition dilapidated building          $2,000
Architect Fees                               $11,250
Legal Fees - for title search                $1,350
Interest During Active Construction Period $5,025
Real estate transfer tax                              $825
Construction Costs                                   $605,000

Problem 1: Using this information, how much should be recorded as the cost of the land?

Reference no: EM132686555

Questions Cloud

Provide p-generation genotype-punnett square cross : Provide p-generation genotype, punnett square cross, phenotypic, and genotypic ratios.

Do think evaluation is an effective method to assess clients : Do you feel that the full evaluation must be done on both new and existing clients? Do you think this evaluation is an effective method to assess clients?

What e-health and national health information system is : EHealth is one of the aspect of vision2030 in healthcare sector; discuss what E-health & National health information system is and what policies have been made.

Differences between brachial-cephalic and basilic veins : What are the differences between the brachial, cephalic, and basilic veins in terms of location and where they drain (lead into - and remember veins

Determine how much should be recorded as cost of the land : Determine How much should be recorded as the cost of the land? February 1, 2018, Salisbury Company purchased land for the future factory location at a cost

Functions of hepatic portal vein and hepatic veins : What are the differences in the functions of the hepatic portal vein and the hepatic veins? Include the basic pathways of both in your answer

How did modern mass media become such an important influence : How did modern mass media become such an important influence on human behavior and health behavior? What are some of the core purposes of a typical.

Differences between financial and managerial accounting : Discuss the differences between financial and managerial accounting. What types of financial statements are used by business organizations

Do you think that all sand on earth has the same density : Do you think that all sand on Earth has the same density? Suggest a factor that could result in variations in density of a particular geomaterial.

User Account

All Pages

Determine how much should be recorded as cost of the land

Reference no: EM132686555

Reference no: EM132686555

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT