On March 1, 2020, Pina Colada Corp. acquired real estate on which it planned to construct a small office building. The company paid $88,000 in cash. An old warehouse on the property was razed at a cost of $9,000; the salvaged materials were sold for $2,700. Additional expenditures before construction began included $1,400 attorney’s fee for work concerning the land purchase, $5,600 real estate broker’s fee, $7,600 architect’s fee, and $13,300 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $
On March 1, 2020, Pina Colada Corp. acquired real estate on which it planned to construct a small office building. The company paid $88,000 in cash. An old warehouse on the property was razed at a cost of $9,000; the salvaged materials were sold for $2,700. Additional expenditures before construction began included $1,400 attorney’s fee for work concerning the land purchase, $5,600 real estate broker’s fee, $7,600 architect’s fee, and $13,300 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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On March 1, 2020, Pina Colada Corp. acquired real estate on which it planned to construct a small office building. The company paid $88,000 in cash. An old warehouse on the property was razed at a cost of $9,000; the salvaged materials were sold for $2,700. Additional expenditures before construction began included $1,400 attorney’s fee for work concerning the land purchase, $5,600 real estate broker’s fee, $7,600 architect’s fee, and $13,300 to put in driveways and a parking lot.
(a)
Determine the amount to be reported as the cost of the land.
(a)
Determine the amount to be reported as the cost of the land.
Cost of land | $ |
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