On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,000.
Question:
On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2016. Costs incurred during this period are:
Demolition of old building | $ 8,000 |
Architect’s fees | 25,000 |
Legal fees for title investigation and purchase contract | 4,000 |
Construction costs | 650,000 |
Edwards sold salvaged materials resulting from the demolition for $2,000.
Required:
1. At what amount should Edwards record the cost of the land and the new building, respectively?
If an input box should be blank, enter a zero.
| Land | Building |
Purchase price of land | $ | $ |
Demolition of old building | | |
Architect's fees | | |
Legal fees | | |
Construction costs | | |
Salvaged materials | | |
Total | $ | $ |
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach