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Novak Corp. was incorporated on January 2, 2020, but was unable to begin manufacturing activities until July 1, 2020, beca factory facilities were not completed

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Novak Corp. was incorporated on January 2, 2020, but was unable to begin manufacturing activities until July 1, 2020, beca factory facilities were not completed until that date. The Land and Building account at December 31, 2020, contained the fo entries and balance: 1. To acquire landand a building, the company paid $110,840 cash and 800 of its, $6 cumulative preferred shares. The fair value of each share was estimated at $96 per share; however, Novak's shares are not actively traded. The land and building were assessed by an independent, reliable valuator to have a combined fair value of $165,690. 2. The costs for removing the bullding amounted to $9,430 and the demolition company kept all the salvaged building materials. 3. Legal fees covered the following: 4. We marance premilim covered the bulding for a two year term beginning May 1,2020. 5. The special tax assessment by the municipality covered street improvements that are permanent in nature. 6. Ganeral expenses covered the following for the period from Jancary 2, 2020, to June 30, 2020: 7. the building's value by 543,650 . It believed thats costs after entering into the building contract. the board of directors increased the building was completed, Retained Earnings was credited for this pustified to reflect the current market at the time when conditioning is 20 years No depreciation has been teconfut ife of the building HVAC (heating system, ventilations air 31. 2020 . Credit accocnt titles are automaticolly indented when the amount is entered. Do not indent manually If no entry is required, select No Entry for the decoount titles end enter Of for the omounts. Do not round intermediate colculations. Rocund find answers to O decimal ploces. cs5,275) Buridines t tVaC. Salaries and Wagr Eiqemir ingurtive Expense Buildings-5tructure Retuined famines Land and Buildof: (To record correction for intial entiles of transactions) Dec 31, 2020 Land and Dullings Depredston Expense Acrumatayed Oerredition-thah STo oxtect remi ting of tepreciaticn experise)

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