Question2 Ethan purchased land for a plant site for $2,300,000. Ethan paid $90,0
ID: 2536225 • Letter: Q
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Question2 Ethan purchased land for a plant site for $2,300,000. Ethan paid $90,000 to remove (raze) a building situated on th Ethan architect $38,6 company was able to sell the bricks salvaged from the building for $5,000 paid legal fees of $1,500 related to acquiring the title to the land. The company then paid an s paid $3,893,000. . e land. The 00 for the new building. Title insurance of $4,200 and liability insurance of $12,000 was paid during construction. Excavation costs totaled $76,000 and the contractor wa Ethan paid the city $9,900 for an assessment to pave the sidewalks around the building. Interest costs incurred during construction totaled $108,000. Trees and shrubs were planted at a cost of $14,000. A parking lot was paved at a cost of $16,000 and a fence surrounding the parking lot was put in at a cost of $12,000 Required 1) What should be the cost of the land recorded by Ethan 2) What should be the cost of the building? 3) What is the cost of land improvements?Explanation / Answer
Answer 1. Cost of Land Purchase Cost 2,300,000.00 Cost of removing of Building 90,000.00 Selling of Bricks of Old Building (5,000.00) Legal Fees for Title of Land 1,500.00 Title Insurance 4,200.00 Total Cost of Land 2,390,700.00 Answer 2. Cost of Building Architect Fees 38,600.00 Liability Insurance 12,000.00 Excavation Costs 76,000.00 Payment to Contractor 3,893,000.00 Interest Costs 108,000.00 Total Cost of Building 4,127,600.00 Answer 3. Cost of Land Improvements Paid to City for an assement for pave the sidewalks 9,900.00 Trees & Shrubs Costs 14,000.00 Paving of Parking Lot 16,000.00 Cost of Fencing of Parking Lot 12,000.00 Total Cost of Land Improvements 51,900.00
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