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Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated
Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $181,000 for the lot plus $76,000 for the old building. The company pays $40,800 to tear down the old building and $60,313 to fill and level the lot. It also pays a total of $1,304.133 in construction costs--this amount consists of $1,226,700 for the new building and $77433 for lighting and paving a parking area next to the building, Prepare a single journal entry to record these costs incurred by Cola, all of which are paid in cash
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