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COST OF FIXED ASSETS
Mooney Sounds, a local stereo retailer, needed a new store because it had outgrown the leased space it had used for several years. Mooney acquired and remodeled a former grocery store. As a part of the acquisition, Mooney incurred the following costs:
Cost of grocery store
$350,000
Cost of land (on which the grocery store is located)
65,000
New roof for building
74,000
Lumber used for remodeling
23,200
Paint
515
Wire and electrical supplies
4,290
New doors
6,400
New windows
3,850
Wages paid to workers for remodeling
12,500
Additional inventory purchased for grand opening sale
45,300
Required:
Determine the cost of the land and the building.
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