Question
Julie paid all costs related to the following transactions in cash. On April 1, 2013, Julie purchased a second office building for $1.2 million. Julie
Julie paid all costs related to the following transactions in cash.
On April 1, 2013, Julie purchased a second office building for $1.2 million. Julie estimates that the value of the land is $200,000 and the remaining amount that she paid represents the value of the building. In addition to the amount that Julie paid for the building, she also paid a 10% commission on the sales price to the real estate broker, 1% in real estate transfer taxes, and $13,250 in additional closing costs. The city requires a safety inspection when a building is sold and every year after. On April 2, Julie paid $750 for the inspection. The inspector required Julie to replace the front doors of the building at a cost of $30,000. The new doors were installed on April 4, and Julie was able to sell the old doors to an architectural salvage firm for $5,000 on the same day.
Record these transactions
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