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Hello. Please provide work and answers in spreadsheet format. Thank you very much! =) On January 1, 2017, ABC Company acquired a parcel of real
Hello. Please provide work and answers in spreadsheet format. Thank you very much! =)
On January 1, 2017, ABC Company acquired a parcel of real estate that included land and a building for a negotiated price of $2,290,000. Before purchasing the property Behrend paid $30,000 for an appraisal that estimated the fair value of the land to be $756,000 and the building to be $1,944,000. In addition, ABC incurred closing costs of $180,000 to complete the transfer of the property and the purchase was financed through a 20 year mortgage note payable with an interest rate of 4%. Two days after completion of the transfer ABC had a water leak in the building that caused $75,000 worth of damage to the building which was repaired Required Assuming ABC occupies the building, determine the acquisition cost that would be capitalized to the land and building accountsStep by Step Solution
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