Question
Urgent help on accounting homework please? Key Company purchased land for $350,000 with intentions to construct an office building on the site. At the time
Urgent help on accounting homework please?
Key Company purchased land for $350,000 with intentions to construct an office building on the site. At the time of the closing, Key Company paid closing costs of $5,000, title fees of $800, and attorney's fees of $3,200. When Key Company purchased the land, removal of an old building was completed in preparation for the new building at a cost of $8,000. However, Key Company was able to sell a portion of the building materials retrieved from the old, demolished building to a local contractor for $2,000. After $21,000 was paid to grade the property, a building was constructed at a total cost of $600,000.
Required:
Based on the previous information, identify the total acquisition costs for the land and the building.
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