Laural Company paid ($ 840,000) cash for real property consisting of a tract of land and a

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Laural Company paid \(\$ 840,000\) cash for real property consisting of a tract of land and a building. The company intended to remodel and use the old building. To allocate the cost of the property acquired, Laural had the property appraised. The appraised values were as follows: land, \(\$ 576,000\), and office building, \(\$ 384,000\). The cost of clearing the land was \(\$ 18,000\). The building was remodeled at a cost of \(\$ 76,800\). The cost of a new identical office building was estimated to be \(\$ 432,000\). Prepare a schedule showing the cost of the assets acquired.

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Financial Accounting A Business Perspective

ISBN: 9780072289985

7th Edition

Authors: Roger H. Hermanson, James Don Edwards

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