Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Please answer all parts and I WILL upvote, thank you! Nash Co. purchased land as a factory site for $416,000. The process of tearing

2. Please answer all parts and I WILL upvote, thank you!
image text in transcribed
Nash Co. purchased land as a factory site for $416,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $43,680 to raze the old buildings and sold salvaged lumber and brick for $6,$52. Legal fees of $1,924 were paid for title investigation and drawing the purchase contract. Nash paid $2,288 to an engineering firm for a land survey, and $70,720 for drawing the factory plans, The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,560, and a liability insurance premium paid during construction was $936. The contractor's charge for construction was $2,849,600. The company paid the contractor in two installments: $1,248,000 at the end of 3 months and $1,601,600 upon completion. Interest costs of $176,800 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Nash Co. Assume that the land survey was for the building. Cost of the Land 5 Cost of the Building $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Auditing Research Tools And Strategies

Authors: Thomas Weirich, Thomas C. Pearson, Alan Reinstein

6th Edition

032430224X, 9780324302240

More Books

Students also viewed these Accounting questions

Question

Explain global human resource management.

Answered: 1 week ago

Question

Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

Discuss whistleblower protection under OSHA.

Answered: 1 week ago