Question
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(289,100 ) (b) Payment for construction from note proceeds 289,100 (c) Cost of land fill and clearing 11,860 (d) Delinquent real estate taxes on property assumed by purchaser 7,990 (e) Premium on 6-month insurance policy during construction 9,480 (f) Refund of 1-month insurance premium because construction completed early (1,580) (g) Architect's fee on building 26,400 (h) Cost of real estate purchased as a plant site (land $202,900 and building $56,600) 259,500 (i) Commission fee paid to real estate agency 9,690 (j) Installation of fences around property 4,140 (k) Cost of razing and removing building 10,530 (1) Proceeds from salvage of demolished building (4,690 ) (m) Interest paid during construction on money borrowed for construction 12,230 (u) Cost of parking lots and driveways 17,750 (o) Cost of trees and shrubbery planted (permanent in nature) 13,350 Excavation costs for new building 3,290
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