The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:
Demolition of old building $9,000
Sale of salvaged materials (1,100)
Architect fees (for a new building) 20,000
Legal fees (for title investigation of land) 3,000
Property taxes on the land (for the first year) 4,000
Building construction cost 600,000
Interest cost related to the construction 23,000
Required:
Determine the amounts that the company should record in the Land and the Building accounts.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On contracts to purchase land, crops that are growing in the field:
Answers (1)
Multiple Choice Question 60 A department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process.
Answers (1)
Which of the following statements about price stickiness or flexibility is true? Multiple Choice Prices of many raw materials are only slightly more flexible than the prices of final goods and services.
Answers (1)
Live trap corporation received the data below for its rodent cage production unit. Output input 50,025 cages production time 652 labor hours sales price: $3.60 per unit wages $ 7.
Answers (1)
In case of an emergency, once you or someone already on the scene has contacted 9-1-1, the next thing to do is: A) Move them to a place where you can work on their injury B) Make sure the victim has an open, unobstructed airway C) Determine if the
Answers (1)
New Questions in Business
Palmer corp is considering the purchase of a new piece of equipment. the cost savings from the equipment would result in an annual increase in net income after tax of "$100,000".
Answers (1)
The Chinese concept of guanxi is an example of: a. In informal, cognitive institutions. b. a regulative, formal institution. c. a favorite cooking method of Chairman Mao. d. taken-for-granted approaches to friendship relations.
Answers (1)
3 Select the correct answer. In an organization, several teams access a critical document that is stored on the server. How would the teams know that they are accessing the latest copy of the document on the server? A. by using a duplicate copy OB.
Answers (1)
cNally Corporation makes a special ski. Next year, McNally expects to produce 20,000 pairs of skis. Seven pounds of fiberglass are required to make each pair of skis.
Answers (1)
Direct materials and direct labor of a company total $7300000. If manufacturing overhead is $3650000, what is direct labor cost? a. Cannot be determined from the information provided. b. $3650000 c. $0 d. $7300000
Answers (1)