#20) Pierce Self Storage purchsed land, paying $170,000 cash as a down payment a
ID: 2452163 • Letter: #
Question
#20) Pierce Self Storage purchsed land, paying $170,000 cash as a down payment and signed $185,000 note paybale for the balance. Pierce also had to pay delinquent property tax of $5,500, title insurance costing $3,500 and $6,000 to level the land and remove an unqanted building. The company paid $55,000 to add soil for the foundation and then construct5ed office building at a cost of $950,000. It also paid $50,000 for a fence around the property, $15,000 for the company sign near the property entrance, and $5,000 for lighting of the grounds.
1. What is the capitalized cost of each of Pierce's land?
2. What is the cost of the land improvement
3. What is the cost of the building?
Explanation / Answer
Down payment 170,000 Note payable 185,000 Delinquent property tax 5,500 Insurance costing 3,500 capitalized cost of each of Pierce's land 364,000 leveling of land 6,000 Soil 55,000 Cost of land improvement 61,000 Building at cost 950,000 Fencing 50,000 company signboard 15,000 Lighting 5,000 Cost of building 1,020,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.