A company purchased land, paying ($ 66,000) cash as a down payment and signing a ($ 120,000)
Question:
A company purchased land, paying \(\$ 66,000\) cash as a down payment and signing a \(\$ 120,000\) note payable for the balance. In addition, the company paid delinquent property tax of \(\$ 2,000\), a title fee of \(\$ 500\), and a \(\$ 5,400\) charge for leveling the land and removing an unwanted building. The company constructed an office building on the land at a cost of \(\$ 410,000\). It also paid \(\$ 18,000\) for a fence around the boundary of the property, \(\$ 2,400\) for the company sign near the entrance to the property, and \(\$ 6,000\) for special lighting of the grounds. Determine the cost of the company's land, land improvements, and building.
Step by Step Answer:
Financial Accounting
ISBN: 9780133118209
2nd Edition
Authors: Charles T. Horngren, Jr. Harrison, Walter T.