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The following cases are independent. Case A Starling Ltd . bought a building for $ 1 , 7 3 0 , 0 0 0 .
The following cases are independent.
Case A Starling Ltd bought a building for $ Before using the building, the following expenditures were made:
Repair and renovation of building $
Construction of new paved driveway
Upgraded landscaping
Wiring
Deposits with utilities for connections
Sign for front and back of building, attached to roof
Installation of fence around property
Case B Lark Company purchased a $ tract of land for a new manufacturing facility. Lark demolished an old building on the property and sold the materials it salvaged from the demolition. Lark incurred additional costs and realized salvage proceeds as follows:
Demolition of old building $
Routine maintenance mowing done on purchase
Proceeds from sale of salvaged materials
Legal fees
Title guarantee insurance
Required:
What balance would Starling report in the building account?
What balance should Lark report in the land account? What balance should Starling report in the Land improvements account?
This part of the question is not part of your Connect assignment.
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