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On January 1, 2020, Teal Corporation purchased for $620,000 a tract of land (site number 101) with a building. Teal paid a real estate broker's
On January 1, 2020, Teal Corporation purchased for $620,000 a tract of land (site number 101) with a building. Teal 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 Teal entered into a $3,720,000 fixed price contract with Slatkin Builders, Inc. on March 1, 2020, for the construction of an office building on land site number 101. The building was completed and occupied on September 30, 2021. Additional construction costs were incurred as follows $26,040 Plans, specifications, and blueprints Architects' fees for design and supervision 101.680 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, Teal borrowed $3,720,000 on March 1, 2020. The loan is payable in 10 annual installments of $372.000 starting on March 1, 2021, plus interest at the rate of 10%. Teal's weighted-average amounts of accumulated building construction expenditures were as follows, $1,612,000 For the period March 1 to December 31, 2020 For the period January 1to September 30, 2021 2,356,000 Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site number 101 as of September 30, 2021. TEAL CORPORATION Cost of Land (Site #101) As of September 30, 2021 Removal of Old Building Cost of Land Real Estate Broker's Commission Plans, Specifications, and Blueprints Interest Capitalized During 2021 Cost of Building Fixed Construction Contract Price Title Insurance Cost of Land and Old Building Legal Fees Architects' Fees Interest Capitalized During 2020 Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2021 TEAL CORPORATION Cost of Building As of September 30, 2021 Cost of Land and Old Building Interest Capitalized During 2021 Title Insurance Cost of Building Interest Capitalized During 2020 Architects' Fees Fixed Construction Contract Price Legal Fees Removal of Old Building Plans, Specifications, and Blueprints Cost of Land Real Estate Brokers Commission
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