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The following costs were associated with the acquisition of the land where XYZ, Inc. acquired and intended to construct its new warehouse. What items will
The following costs were associated with the acquisition of the land where XYZ, Inc. acquired and | |||||
intended to construct its new warehouse. What items will be capitalized and included in the price | |||||
of the land? | |||||
purchase price | $1,000,000 | ||||
closing costs | $50,000 | ||||
attorneys fees at closing | $10,000 | ||||
real estate agent commissions | $60,000 | ||||
title fee | $2,500 | ||||
title search | $4,500 | ||||
recording fee | $1,000 | ||||
clearing, filling, draining | $3,500 | ||||
removing old building cost | $15,000 | ||||
proceeds from sale of old building | $12,000 | ||||
fence constructed around land cost | $6,500 | ||||
cost of driveway on land to build parking lot | $8,500 | ||||
insurance for first year | $12,000 | ||||
property taxes for first year | $16,500 |
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