On March 1, 2013, Beldon Corporation purchased land as a factory site for $54000
ID: 2467109 • Letter: O
Question
On March 1, 2013, Beldon Corporation purchased land as a factory site for $54000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2013. Costs incurred during this period are listed below:
Demolition of old building $3500
Architect's fees for new building $13000
Legal fees for title investigation of land $1700
Property taxes on land for period beginning March 1, 2013 $3300
Construction costs $560000
Interest on construction loan $6800
Salvaged materials resulting from the demolition of the old building were sold for $2800
Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building and any amounts to expense.
On March 1, 2013, Beldon Corporation purchased land as a factory site for $54000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2013. Costs incurred during this period are listed below:
Demolition of old building $3500
Architect's fees for new building $13000
Legal fees for title investigation of land $1700
Property taxes on land for period beginning March 1, 2013 $3300
Construction costs $560000
Interest on construction loan $6800
Salvaged materials resulting from the demolition of the old building were sold for $2800
Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building and any amounts to expense.
Capitalized cost of land
Capitalized cost of building
Total expensed items
Explanation / Answer
Computationof the Capitalize costof the land and New Building
Particulars Amount Cost of land: Land $54000 Demolition $3500 Legal fees $1700 Salvage materials ($2800) Cost of Land $56,400Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.