Question
Ginobili corporations property, plant and equipment as of dec 31, 2020 include the following: Land 400,000 Buildings 3,200,000 The following transactions occurred during 2021: Land
Ginobili corporations property, plant and equipment as of dec 31, 2020 include the following:
Land 400,000
Buildings 3,200,000
The following transactions occurred during 2021:
Land site number 102 was acquired for 4,000,000. Additionally to acquire the land the entity paid a 240,000 to a real estate agent. Costs of 600,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for 20,000
A second tract of land (site number 103) with a building was acquired for 1,200,000. Based on reliable information at the time of acquisition fair value of the land is 800,000 and the building 400,000. Shortly after acquisition, the building was demolished at a cost of 120,000. A new building was constructed for 1,600,000 plus the following cost:
Excavation fees 44,000
Architectural design fees 32,000
Building permit fees 4,000
The building was completed and occupied on September 1,2020
-The balance of land account as Dec. 31, 2021 is
- The balance of building account as Dec. 31, 2021 is
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