Question
Entity A incurred the following during the year in which it constructed a new facility. 1. Real estate purchased as facility site (seller valued land
Entity A incurred the following during the year in which it constructed a new facility.
1. Real estate purchased as facility site
(seller valued land at $250,000 and building
at $40,000; Entity A demolished the existing building) $290,000
2. Accrued real estate taxes (owed by seller) paid at time
of purchase of real estate 6,000
3. Cost of demolition of building to make land suitable for
construction of a new building 32,000
4. Cost of filling and grading the land 6,700
5. Excavation costs for new building 21,900
6. Architects fees for new building plans 44,000
7. Full payment to building contractor 629,500
8. Cost of parking lots, driveways, landscaping 36,000
9. Proceeds from salvage of demolished building 12,700
List the items and amounts that make up the Land account. Be sure to provide a total.
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