Question
Fullerton Waste Management purchased land and a warehouse for $650,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition:
Fullerton Waste Management purchased land and a warehouse for $650,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: brokers commission, $35,000; title insurance, $5,500; miscellaneous closing costs, $8,500. The warehouse was immediately demolished at a cost of $23,000 in anticipation of the building of a new warehouse. Determine the amounts Fullerton should capitalize as the cost of the land and the building.
CAPITALIZED COST OF LAND?
CAPITALIZED COST OF BUILDING?
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
324663854, 978-0324663853
