Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down a building on the land. Salvage materials was sold for P20,000. Legal fee of P15,000 was paid for title investigation and making the purchase. Architect fee was P125,000. Excavation amounted to P40,000. The contractor was paid P8,800,000. A special assessment made by the city for pavement was P30,000. Interest incurred during construction was P300,000. The entity installed lighting and signage at a cost of P50,000. 5.1 What is the cost of the land? __________ 5.2 What is cost of the building? ___________

Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down a building on the land. Salvage materials was sold for P20,000. Legal fee of P15,000 was paid for title investigation and making the purchase. Architect fee was P125,000. Excavation amounted to P40,000. The contractor was paid P8,800,000. A special assessment made by the city for pavement was P30,000. Interest incurred during construction was P300,000. The entity installed lighting and signage at a cost of P50,000. 5.1 What is the cost of the land? 5.2 What is cost of the building? _

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

See similar textbooks

Similar questions

Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?
Texas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cost $5,000, and liability insurance during construction cost $4,000. Excavation cost $20,000. The contractor was paid $4,000,000. An assessment made by the city for pavement was $20,000. Interest costs during construction were $200,000. The cost of the land that should be recorded by Texas Co. is?
Columbia Company incurred the following expenditures related to the land and building: Payment for land and old building 1,750,000 Demolition of old building to prepare the land for the construction of a new building 87,500 Payment to tenants for vacating old building 26,250 Building permit for new construction 52,500 Surveying fee before construction of new building 35,000 Parking lots and driveways (part of building plan) 70,000 Cost of grading, leveling and landfill 78,750 Assessment by city for drainage project 8,750 Construction costs of new building 10,500,000 Temporary quarters for…
Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two building on the land. Salvage was sold for P2,700. Legal fees of P1,740 were paid for title investigation and making the purchase. Architect's fees were P15,600. Land Title insurance cost P1,200. Liability insurance during construction cost, P1300. Excavation cost P5,220. The contractor was paid P1,100,000. An assessment made by the city for pavement was P3,200. Interest costs during construction were P85,000. The cost of the land is The cost of the building is a. 1,201,900b. 1,207,120c. 1,234,420d. none of these
Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two building on the land. Salvage was sold for P2,700. Legal fees of P1,740 were paid for title investigation and making the purchase. Architect's fees were P15,600. Land Title insurance cost P1,200. Liability insurance during construction cost, P1300. Excavation cost P5,220. The contractor was paid P1,100,000. An assessment made by the city for pavement was P3,200. Interest costs during construction were P85,000. The cost of the land is a. 330,240b. 333,440c. 306,140d. none of these
DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the construction of a new building on the lot. Additional information follows: Legal cost of conveying title to land ₱ 40,000 Special assessment 20,000 Survey costs 60,000 Materials, labor, and overhead costs 22,000,000 Cash discounts on materials purchased not taken 120,000 Clerical and other costs related to construction 56,000 Excavation costs 400,000 Architectural fees and building permit 240,000 Supervision by management on construction 48,000 Insurance premiums paid for workers 520,000 Payment for claim for injuries not covered by insurance 180,000 Savings on construction 800,000 Cost of changes to plans and specifications due to inefficiencies 560,000 Paving of streets and sidewalks (not included in blueprint) 40,000 Income earned on a vacant space rented as parking lot during construction 36,000 1. How much are the capitalized costs of the land, land improvement and the…
Marjorie Company commenced operations at the beginning of the current year. The following costs are incurred by the entity: Payment for land Taxes in arrears on building on land Demolition of current building on land, net of salvage of P10,000 1,000,000 40,000 100,000 Survey before construction of new building Contract price for factory building 60,000 5,000,000 Architect fee 230,000 Payment to city hall for approval of building construction 120,000 Safety fence around construction site Safety inspection on building 35,000 30,000 20,000 Removal of safety fence after completion of factory building New fence surrounding the factory Driveways, parking bays and safety lighting Cost of trees, shrubs and other landscaping 80,000 550,000 250,000 The land and factory building should respectively be measured at
Leni Company incurred the following costs during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demolition of old building, net of salvage of P10,000 10,000 10,000 50,000 1,000,000 100,000 Architect fee 230,000 120,000 5,000,000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of building New fence surrounding the factory Driveways, parking bays and safety lighting 35,000 30,000 20,000 80,000 550,000 What is the cost of land and building, respectively? (Format of answer should be LAND: 1234567; BUILDING: 1234567)
The following allotment and NCA were received by Agency LMN from DBM: P10 million for capital outlay; P12 million for maintenance and other operating expenses; P13 million for personal services. The agency is using an old building for its office. The left wing of this building is no longer being used due to an earthquake that happened years ago which made it unsafe for use. However, engineers and architect were hired to fix the left wing in order for it to be safe for use once again. The engineers and architects are predicting that the left wing is safe for use for the next 10 years assuming that no more strong earthquakes will be experienced. Cost of materials for this project amounted to P14.89 million while labor cost amounted to P12.5 million. The right wing also needs to be repainted. The agency bought paints totaling P3,800,000. Once the renovation was done, all offices were refurnished. New furniture and fixtures and equipment were purchased amounting to P4 million. Office…
Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect's fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest costs during construction were $43300. The cost of the land should be recorded at $292330. O $294770. O $296510. O $294070.
Reiley Co. purchased land as a factory site for P1,000,000. Reiley paidP40,000 to tear down two buildings on the land. Salvage was sold for P5,400.Legal fees of P3,480 were paid for title investigation and making the purchase.Architect's fees were P41,200. Title insurance cost P2,400, and liabilityinsurance during construction cost P2,600. Excavation cost P10,440. Thecontractor was paid P2,400,000. An assessment made by the city for pavement wasP6,400. Interest costs during construction were P170,000. The cost of the landthat should be recorded by Reiley Co. is
Denzil Co. purchased land as a factory site for $600,000. Denzil paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect’s fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,200,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. What is the cost of the land that should be recorded by Denzil Co.? $