COST OF FIXED ASSETS Mooney Sounds, a local stereo retailer, needed a new store because it had outgrown the leased space it had used for several years. Mooney acquired and remodeled a former grocery store. As a part of the acquisition, Mooney incurred the following costs:

Cost of grocery store $350,000 Cost of land (on which the grocery store is located) 65,000 New roof for building 74,000 Lumber used for remodeling 23,200 Paint 515 Wire and electrical supplies 4,290 New doors 6,400 New windows 3,850 Wages paid to workers for remodeling 12,500 Additional inventory purchased for grand opening sale 45,300 Required:

Determine the cost of the land and the building.

Exercise