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Martinez Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee
Martinez Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search Architect's fees Cash paid for land and dilapidated building thereon Removal of old building $988 6,023 165,300 $38,000 10,450 27,550 14,060 36,100 104,500 2,546 Less: Salvage Interest on short-term loans during construction Excavation before construction for basement Machinery purchased (subject to 2% cash discount, which was not taken) Freight on machinery purchased Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,142 New building constructed (building construction took 6 months from date of purchase of land and old building) 921,500 Assessment by city for drainage project 3,040 Hauling charges for delivery of machinery from storage to new building 1,178 Installation of machinery 3,800 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 10,260 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
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