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Crane Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery: Legal fees for title search
Crane Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery: Legal fees for title search $510 Property tax in arrears at property purchase date 4,400 Architect's fees 3,000 Cash paid for land and dilapidated building on it 115,000 Removal of old building $20,300 Less: Salvage Surveying before construction 5,980 14,320 360 Interest on short-term loans during construction 7,300 Excavation before construction for basement and foundation 19,400 Machinery purchased (subject to 3% cash discount, which was not taken) 65,100 Freight on machinery purchased 1,370 Exchange on foreign currency purchase of machinery 1,880 Storage charges on machinery, made necessary because building was still under construction when machinery was delivered 2,200 New building constructed (building construction took six months from date of purchase of land and old building) 483,000 Assessment by city for drainage project 1,870 Fence surrounding the property for security 13,100 Hauling charges for delivery of machinery from storage to new building 620 Installation of machinery 2,000 Customs duty on importing machinery 5,500 Municipal grant to promote locating building in the municipality (8,100 ) (a) Determine the amounts that should be included in the cost of land, buildings, and machinery. Also determine the other amounts that are not included in these accounts. Land +A $ Buildings $ Machinery AA $ Other $
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