Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500 Past due taxes 650 Title search 275 Cost of razing old building 1300 Interest (incurred after productive operations had begun) 160 Proceeds from salvage of old building 1875 What is the capitalizable cost of the land?
Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500 Past due taxes 650 Title search 275 Cost of razing old building 1300 Interest (incurred after productive operations had begun) 160 Proceeds from salvage of old building 1875 What is the capitalizable cost of the land?
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...
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Ramirez Company made the following payments related to a land acquisition:
What is the capitalizable cost of the land?
Purchase price | $7,500 |
Past due taxes | 650 |
Title search | 275 |
Cost of razing old building | 1300 |
Interest (incurred after productive operations had begun) | 160 |
Proceeds from salvage of old building | 1875 |
What is the capitalizable cost of the land?
$7,850
$7,500
$8,010
$9,725
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