Security, Inc., opened an office in Maplewood, Minnesota. Security incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building:
(Click the icon to view the financial data.)
The company depreciates buildings over 30 years, land improvement over 25 years, and furniture over 12 years, all on a straight-line basis with residual values of zero. Read the requirements
Requirement 1. Identify the proper account (Land, Land Improvements, Sales Building, Garage Building, or Furniture) for each of the costs listed in the problem. Calculate the total cost of each asset.
Start with items a through i, next, enter items j through q, and lastly calculate the totals for each asset category. (If an input field is not used in the table leave the field empty; do not enter a zero. Round percentages to two places when calculating proportions (X.XX%), and use your computed percentages throughout. Round your final answers to the nearest whole dollar.)
Requirements 1. Identify the proper account (Land, Land Improvements, Sales Building, Garage Building, or Furniture) for each of the costs listed in the problem. Calculate the total cost of each asset. 2. All construction was complete and the assets were placed in service on April 2. Record depreciation for the year ended December 31. Round to the nearest dollar 3. Why would a manager need to understand the concepts covered in this problem? Print Done Security, Inc., opened an office in Maplewood, Minnesota. Security incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building: 3 Click the icon to view the financial data.) The company depreciates buildings over 30 years, land improvements over 25 years, and furniture over 12 years, all on a straight-line basis with residual values of zero. Read the requirements Requirement 1. Identify the proper account (Land, Land Improvements, Sales Building, Garage Building, or Furniture) for each of the costs listed in the problem. Calculate the total cost of each asset. Start with items a through i, next, enter itemsj through q, and lastly calculate the totals for each asset category. (If an input field is not used in the table leave the field empty; do not enter a zero. Round percentages to two places when calculating proportions (X.XX%), and use your computed percentages throughout your final answers to the nearest whole dollar.) Land Sales Garage Building Item Land Improvements Building Furniture a. b C. d. e. f. g h. i. Data Table $ 360,000 8,600 31,300 600 5,000 f. a. Purchase price of land, including an old building that will be used for a garage (land market value is $315,000; building market value is $85,000) b. Grading (leveling) land C. Fence around the land d. Attorney fee for title search on the land e. Delinquent real estate taxes on the land to be paid by Security Company signs at entrance to the property g. Building permit for the sales building h. Architect fee for the design of the sales building i. Masonry, carpentry, and roofing of the sales building i Renovation of the garage building k. Interest cost on construction loan for sales building I Landscaping (trees and shrubs) m. Parking lot and concrete walks on the property n. Lights for the parking lot and walkways 0. Salary of construction supervisor (82% to sales building: 10% to land improvements; and 8% to garage building renovations) P. Office furniture for the sales building 9. Transportation and installation of furniture 1,300 800 54,540 516,000 34,660 9,300 6,000 53,000 8,000 48,000 79,300 1,500 Print Done
