Comprehensive

On January 2, 2016, Brock Corporation purchased a tract of land (site number 101) with a building for $600,000. Additionally, Brock paid a real estate broker's commission $36,000, legal fees of $6,000, and title guarantee insurance of $18,000. The closing statement indicated that the land's value was $500,000 and the building's value was 100,000. Shortly after acquisition, the building was razed et a cost of $75,000. Brock entered into a $3,000,000 fixed-price contract with Barnett Builders, Inc, on March 2, 2016, for the construction of an office building on land site number 101. The building was completed and occupied on September 30, 2017. Additional construction costs were incurred as follows Plans, specifications, and blueprints $12,000 Archtects' fees for design and supervision 95,000 The company estimates that the building will have a 40-year life from the date of completion and To finance the construction cost, Brock Brock's weighted average accumulated expenditures related to the construction of the building were as follows: decides to use the 150%-declining-balance depreciation method. borrowed $3,000,000 on March 2, 2016. The loan is payable in 10 annual installments of $300,000 plus interest at the rate of 14%. For the period March 2 to December 31, 2016 $900,000 For the period January 1 to September 30, 2017 2,300,000 equired: 1. Prepare a schedule that discloses the individual costs making up the balance in the Land account with respect to land site number 101 as of September 30, 2017 BROCK CORPORATION Land Account (Site Number 101) As of September 30, 2017 cost Real estate broker's commission Legal fees insurance Cost of razing existing building Bulince, Sepember Balance, September 30, 2017 Feedback 2. Prepare a schedule that discloses the individual costs that the company should capitalize in the Office Building account as of September 30, 2017.If required, nearest dollar. BROO CORPORATION Capitalized Cost of Office Building Contract cost Plan, specifications, and blueprints Architects fees for design and supervision Capitalized interest-2016 Capitalized interest 2017 Y Total capitalized cost, September 30, 2017 ng the depreciation expense computation of the office building for the year ended December 31, 2017. When required, round your answers to th nearest dollar BROCK CORPORATION of Office Building Using 1 For the Year Ended December 31, 2017 Computation of Depreciation SO% Dedining Balance Method Capitalized cost 150% declining balance rate Annual depreciation Depreciation October 1 to December 31, 2017