Question
The following expenditures and receipts are related to land, land improvements, and buildings that were acquired for use in a business enterprise. The receipts are
The following expenditures and receipts are related to land, land improvements, and buildings that were acquired for use in a business enterprise. The receipts are in parentheses.
1.Money borrowed to pay a building contractor (signed a note), ($275,000)2.A payment for building construction from note proceeds, $275,0003.The cost of landfill and clearing, $7,8804.Delinquent real estate taxes on property, assumed by the purchaser, $6,8305.A premium on a six-month insurance policy during construction, $5,5606.Refund of one month's insurance premium because construction was completed early, ($750)7.An architect's fee on a building, $21,9908.The cost of real estate purchased as a plant site (land $199,900, building $49,975), $249,8759.A fee paid to a real estate agency for finding the property, $8,740 relating to the land purchase (see 8)10.The installation of fences around a property, $3,73011.The cost of razing (demolishing) and removing the building on the plant site (see item 8), $10,59012.Proceeds from the salvage of the demolished building, ($4,830)13.Interest paid during construction on money borrowed for construction, $12,87014.The cost of parking lots and driveways, $18,70015.The cost of trees that were planted (non-permanent in nature, to be replaced every 20 years), $13,57016.Excavation costs for new building, $2,51017.The recoverable GST on the excavation cost, $190
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