ment FULL SCREEN PRINTER VERSION BACK NEXT Exercise 9-3 Your answer is incorrect
ID: 2591473 • Letter: M
Question
ment FULL SCREEN PRINTER VERSION BACK NEXT Exercise 9-3 Your answer is incorrect. Try again On March 1, 2017, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $88,000 in cash. An old warehouse on the property was razed at a cost of $9,000; the salvaged materials were sold for $2,700. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $5,600 real estate broker's fee, $7,600 architect's fee, and $13,300 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of land 104000 SHOW LIST OF ACCOUNTS SHOW SOLUTION VIDEO: APPLIED SKILLS Question Attempts: 3 of 4 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
Cost of Land = Purchase cost + Net cost of removing warehouse* + Attorney’s fee + broker’s fee
where Net cost of removing warehouse* = Cost of razed out - Sales of salvage material.
Amount to be recorded as cost of Land = $88,000 + $9,000 - $2,700 + $14,00 + $56,00 = $101,300
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.