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Classify the following to be recorded as land, land improvements, building, machinery, and/ or period expenses. A company made the following expenditures in connection with
Classify the following to be recorded as land, land improvements, building, machinery, and/ or period expenses.
A company made the following expenditures in connection with the construction of its new building: $25,000 425,000 Architect's fees for the new building Cash paid for land and run-down building on the land Removal of old building Salvage from sale of old building materials Construction survey to site the new building 17,500 6,000 3,500 Legal fees for title search 4,500 45,500 250,000 1,200 Excavation for basement construction Machinery purchased for operations Storage charges on machinery because building was not ready when machinery was delivered Freight on machinery purchased Hauling charges to deliver machinery from storage to new building Construction costs of new building Paid employees to train them on new machine 1,500 375 1,675,000 3,500 Landscaping 35,000 Installation of machinery 4,500Step by Step Solution
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