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A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:
Purchase price of the land $ 400,000 Sale of salvaged parts already on land 20,000 Demolition of the old building 30,000 Ground-breaking ceremony (food and supplies) 1,500 Land preparation and leveling 7,500
What amount should be recorded for the purchase of the land?
Multiple Choice -
$439,000
-
$437,500
-
$417,500
-
$419,000
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:
Purchase price of the land | $ 400,000 |
---|---|
Sale of salvaged parts already on land | 20,000 |
Demolition of the old building | 30,000 |
Ground-breaking ceremony (food and supplies) | 1,500 |
Land preparation and leveling | 7,500 |
What amount should be recorded for the purchase of the land?
Multiple Choice
$439,000
$437,500
$417,500
$419,000
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