(Learning Objective 1: Determining the cost of PPE) Ayer Self Storage purchased land, paying $175,000 cash as...
Question:
(Learning Objective 1: Determining the cost of PPE) Ayer Self Storage purchased land, paying $175,000 cash as a downpayment and signing a $190,000 note payable for the balance. Ayer also had to pay delinquent property tax of $3,500, title insurance costing
$3,000, and $9,000 to level the land and remove an unwanted building. The company paid $59,000 to add soil for the foundation and then constructed an offi ce building at a cost of $650,000. It also paid $55,000 for a fence around the property, $14,000 for the company sign near the property entrance, and $8,000 for lighting of the grounds. Determine the cost of Ayer’s land, land improvements, and building.
Step by Step Answer:
Financial Accounting International Financial Reporting Standards
ISBN: 9780273777809
1st Global Edition
Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy