Business, 20.03.2020 20:30, montecillolinda
The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:
Demolition of old building $9,000
Sale of salvaged materials (1,100)
Architect fees (for a new building) 20,000
Legal fees (for title investigation of land) 3,000
Property taxes on the land (for the first year) 4,000
Building construction cost 600,000
Interest cost related to the construction 23,000
Required:
Determine the amounts that the company should record in the Land and the Building accounts.
Answers: 1
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The Italian Bread Company purchased land as a factory site for $70,000. An old building on the prope...
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