E7-29B. (Learning Objective 1: Determining the cost of PPE) Deville Self Storage purchased land, paying 165,000 cash
Question:
E7-29B. (Learning Objective 1: Determining the cost of PPE) Deville Self Storage purchased land, paying €165,000 cash as a downpayment and signing a €192,000 note payable for the balance. Deville also had to pay delinquent property tax of €4,500, title insurance costing
€3,000, and €6,000 to level the land and remove an unwanted building. The company paid
€58,000 to add soil for the foundation and then constructed an office building at a cost of
€620,000. It also paid €48,000 for a fence around the property, €22,000 for the company sign near the property entrance, and €2,000 for lighting of the grounds. Determine the cost of Deville’s land, land improvements, and building.
Step by Step Answer:
Financial Accounting International Financial Reporting Standards Global Edition
ISBN: 9781292211145
11th Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison