On February 1, 2007 Edwards Corporation purchased a parcel of land as a factory site for $50,000.
Question:
Demolition of old building ................ $ 4,000
Architect’s fees ................... 20,000
Legal fees for title investigation and purchase contract ..... 2,000
Construction costs .................. 500,000
The company sold salvaged materials resulting from the demolition for $3,000.
Required
At what amount should Edwards record the cost of the land and the new building, respectively?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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