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Question 2 Ben Sisko 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 $957 5,833 160,080 $36,800 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) Company uses net method to record discount. Freight on machinery purchased Storage charges on machinery, necessitated by noncompletion of 10,120 26,680 13,616 34,960 101,200 2,466 4,011 building when machinery was delivered New building constructed (building construction took 6 months from date of purchase of land and old building) Assessment by city for drainage project Hauling charges for delivery of machinery Installation of machinery Trees, shrubs, and other landscaping after completion of building 892,400 2,944 1,141 3,680 from storage to new building (permanent in nature) 9,936 Question 2 Ben Sisko 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 $957 5,833 160,080 $36,800 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) Company uses net method to record discount. Freight on machinery purchased Storage charges on machinery, necessitated by noncompletion of 10,120 26,680 13,616 34,960 101,200 2,466 4,011 building when machinery was delivered New building constructed (building construction took 6 months from date of purchase of land and old building) Assessment by city for drainage project Hauling charges for delivery of machinery Installation of machinery Trees, shrubs, and other landscaping after completion of building 892,400 2,944 1,141 3,680 from storage to new building (permanent in nature) 9,936