A company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions $175.000 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be allc the cost of the new building? O $175,800 to Land; $18,800 to Building

A company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions $175.000 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be allc the cost of the new building? O $175,800 to Land; $18,800 to Building

Name: A company purchased property for a building site. The costs associate
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Description: A company purchased property for a building site. The costs associated with the property were:Purchase price$175,000Real estate commissions15,000Legal fees.Expenses of clearing the landExpenses to remove old building8002,0001,000What portion of thes

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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