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please full calculation and explanation Realtee Corporation made a single real estate purchase in 2019. The following costs were incurred by Realtee, with respect to
please full calculation and explanation
Realtee Corporation made a single real estate purchase in 2019. The following costs were incurred by Realtee, with respect to this property, in the 2019 year. All amounts were recorded in a single account, called "Property Projects". Purchase price of property (with office and 2 rotted outbuildings) Legal fees for purchase of property Property taxes in arrears on real estate Architectural drawings for new plant to be built Renovations to office building (to prepare it for use) Cost to dispose of outbuildings Insurance policy coverage during construction of new plant Construction of new plant Paving of parking lot Repairs to fence due to vandalism later in the year TOTAL 302,378 5,104 7,094 13,839 11,000 4,000 16,056 745,000 14,000 1,200 1,119,671 Note that the real estate was appraised at the following values at the time of purchase: Land 99,785 Office building 235,855 2 Outbuildings Fence 16,631 (Round any calculations to nearest whole percentage) The new plant was ready for occupancy on July 1. Depreciation for all assets is 5% per year on a declining balance basis. One-half year of depreciation should be claimed in the first year. REQUIRED: Assuming that Realtee's year end is December 31, determine the total cost of each of the following assets and prepare journal entries to make any necessary adjustments to the accounts, including depreciation: Land Building 1 (office purchased with the property) Building 2 (newly constructed plant) Land ImprovementsStep by Step Solution
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