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On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $750,00 Blackstone paid a real estate
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $750,00 Blackstone paid a real estate broker's commission of $51,000, legal fees of $8,500, and title insurance of $25,500. statement indicated that the land value was $575,000 and the building value was $175,000. Shortly after acquisition razed at a cost of $90,000. Blackstone entered into a $4,500,000 fixed-price contract with Barnett Builders, Inc., on March 1, 2021, for the const building on land site 11. The building was completed and occupied on September 30, 2022. Additional construction incurred as follows: Plans, specifications, and blueprints Architects fees for design and supervision $27,000 99,000 To finance the construction cost, Blackstone borrowed $4,500,000 on March 1, 2021. The loan is payable in 10 annua $450,000 plus interest at the rate of 16%. Blackstone's average amounts of accumulated building construction expen follows: For the period March 1 to December 31, 2021 For the period January 1 to September 30, 2022 $1,050,000 3,050,000 Required: 1. Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land September 30, 2022. 2. Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of 2022. Complete this question by entering your answers in the tabs below. Required 2 Next > Required 1 Prey 3 of 5
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