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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

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On January 1,2025, Coronado Corporation purchased for $620,000 a tract of land (site number 101) with a building. Coronado paid a
real estate broker's commission of $44,640, legal fees of $7,440, and title guarantee insurance of $22,320. The closing statement
indicated that the land value was $620,000 and the building value was $124,000. Shortly after acquisition, the building was razed at a
cost of $66,960.
Coronado entered into a $3,720,000 fixed-price contract with Slatkin Builders, Inc. on March 1,2025, for the construction of an office
building on land site number 101. The building was completed and occupied on September 30,2026. Additional construction costs
were incurred as follows.
The building is estimated to have a 40-year life from date of completion and will be depreciated using the 150% declining-balance
method.
To finance construction costs, Coronado borrowed $3,720,000 on March 1,2025. The loan is payable in 10 annual installments of
$372,000 starting on March 1,2026, plus interest at the rate of 10%. Coronado's weighted-average amounts of accumulated building
construction expenditures were as follows.
For the period March 1 to December 31,2025 $1,612,000
For the period January 1 to September 30,20262,356,000
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