Question
February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. The dilapidated building that was on the property
February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2016. Costs incurred during this period were:
Item Amount
Demolition dilapidated building - $4,000
Architect Fees - $10,000
Legal Fees - for title search - $2,000
Interest During Active Construction Period - $18,750
Construction Costs - $500,000
Using this information, how much should be recorded as the cost of: (Enter only whole dollar values.)
1. Land
2. New Building
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started