S Kieso, Intermediate Accounting, 16e Grace Period: 9 days left I Register ectic

Question

S Kieso, Intermediate Accounting, 16e Grace Period: 9 days left I Register ectice GradebookORION wnloadable efextboslk Exercise 10-2 Bramble Ca. parchased land a The company paid $32.,080 to raze the old buildings and sald salvaged lumber and brick for $7,812 Legal fees of $2,294 s a factory site for $496,000. The process of tearing down two old buildings on the site and constructing the factory required menths were paid for tidle investigation and drawing the purchase contract. Bramble paid S The company paid the contractor in two Installments: ,488,000 at the end of 3 months and $1,909,600 upon completion. Inberest costs of $210,800 were incurred to finance the construction. the cost of the land nd the cost of the building as they should be recorded on the books of Bramble Co. Assume that the land survey was for the building Cost of the Land Cost of the building s Question Attempts: 0 of 3 used saru at ATI-

Explanation / Answer

Cost of Land: Net cost fo dismantling the old building (52080-7812) 44268 Legal fees paid for investigation and drawing contract 2294 Title insurance 1860 Cost of Land: 48422 Cost of Building: land survey cost 2728 Drawing the factory plan 84320 Insuracne paid for construction 1116 Cost of contractor 3397600 Interest cost during the construction 210800 Cost of Building: 3696564

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