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On January 1 , 2 0 2 5 , Coronado Corporation purchased for $ 6 2 0 , 0 0 0 a tract of land
On January Coronado Corporation purchased for $ a tract of land site number with a building. Coronado paid a
real estate broker's commission of $ legal fees of $ and title guarantee insurance of $ The closing statement
indicated that the land value was $ and the building value was $ Shortly after acquisition, the building was razed at a
cost of $
Coronado entered into a $ fixedprice contract with Slatkin Builders, Inc. on March for the construction of an office
building on land site number The building was completed and occupied on September Additional construction costs
were incurred as follows.
The building is estimated to have a year life from date of completion and will be depreciated using the decliningbalance
method.
To finance construction costs, Coronado borrowed $ on March The loan is payable in annual installments of
$ starting on March plus interest at the rate of Coronado's weightedaverage amounts of accumulated building
construction expenditures were as follows.
For the period March to December $
For the period January to September
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