Question 14 (of 1/) 4. 1.00 points On January 1, 2013, the Blackstone Corporation purchased a tract of land (site number 11) with a builiding or $600,000. Additionally, Blackstone paid a real estate brokers commission of $36,000, legal fees of $6,000, and title insurance and the building value of $18,000. The closing statement indicated that the land value was $500,000 was $100,000. Shortly after acquisition, the building was razed at a cost of $75,000. Blackstone entered into a $3,000,000 fixed-price contract with Bamett Builders Co, on March 1, 2013, for the construction of an office building on land site 11. The building was completed and oocupied on September 30, 2014. Additional construction costs were incurred as follows Plans, specifications, and blueprints Architects tees for design and supervision95,000 $12,000 To finance the construction cost, Blackstone borrowed $3,000,000 on March 1,2013. The loan is payable in 10 annual instalments of S300.000 plus interest at the rate of 14% Blackstone's average amounts of accumulaled building construction expenditures were as follows For the period March 1 to December 31, 2013 $ 900,000 For the period January 1 to September 30, 2014 2,300,000 Required: (1) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2014. (Omit the "$" sign in your response.) LAND ACCOUNT (Site Number 11) $ 600000 36000 6000 18000 75000 sition cost Real estate broker's commission fees Title insurance Cost of razing existing building novo HW 10 Blackstone Corporation LAND ACCOUNT (Site Number 11) As of Se tion cost Real estate broker's commission Legal fees Title insurance Cost of razing existing building 600000 36000 6000 18000 75000 Balance, September 30, 2014 s735000 (2) Prepare a schedule that discloses the individual costs that shoukd be capitalized in the office building account as of September 30, 2014.(Omit the "$" sign in your response.) CAPITALIZED COST OF OFFICE BUILDING Contract cost Plans Architects' fees for design and supervision Capitalized interest for 2011 Capitalized interest for 2012 12000 95000 Total capitalized cost, September 30, 2014 References Worksheet Leaning Objectve: 10-02 Determine LenovO Question 14 (of 1/) 4. 1.00 points On January 1, 2013, the Blackstone Corporation purchased a tract of land (site number 11) with a builiding or $600,000. Additionally, Blackstone paid a real estate brokers commission of $36,000, legal fees of $6,000, and title insurance and the building value of $18,000. The closing statement indicated that the land value was $500,000 was $100,000. Shortly after acquisition, the building was razed at a cost of $75,000. Blackstone entered into a $3,000,000 fixed-price contract with Bamett Builders Co, on March 1, 2013, for the construction of an office building on land site 11. The building was completed and oocupied on September 30, 2014. Additional construction costs were incurred as follows Plans, specifications, and blueprints Architects tees for design and supervision95,000 $12,000 To finance the construction cost, Blackstone borrowed $3,000,000 on March 1,2013. The loan is payable in 10 annual instalments of S300.000 plus interest at the rate of 14% Blackstone's average amounts of accumulaled building construction expenditures were as follows For the period March 1 to December 31, 2013 $ 900,000 For the period January 1 to September 30, 2014 2,300,000 Required: (1) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2014. (Omit the "$" sign in your response.) LAND ACCOUNT (Site Number 11) $ 600000 36000 6000 18000 75000 sition cost Real estate broker's commission fees Title insurance Cost of razing existing building novo HW 10 Blackstone Corporation LAND ACCOUNT (Site Number 11) As of Se tion cost Real estate broker's commission Legal fees Title insurance Cost of razing existing building 600000 36000 6000 18000 75000 Balance, September 30, 2014 s735000 (2) Prepare a schedule that discloses the individual costs that shoukd be capitalized in the office building account as of September 30, 2014.(Omit the "$" sign in your response.) CAPITALIZED COST OF OFFICE BUILDING Contract cost Plans Architects' fees for design and supervision Capitalized interest for 2011 Capitalized interest for 2012 12000 95000 Total capitalized cost, September 30, 2014 References Worksheet Leaning Objectve: 10-02 Determine LenovO
