Answer:
Cost of land = $220,400
Cost of building = $0
Explanation:
The computation of the land and the cost of the new building is shown below:
Cost of land = Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $194,000 + $16,900 + $2,700 + $3,900 + $2,900
= $220,400
The cost of the new building would be zero as all the costs are allocated to the cost of the land. So, no cost is allocated to the cost of the new building
Answer:
This transfer is AN ASSIGNMENT.
The assignor transfers rights or benefits to another party, but duties and obligations are not transferable.
Revenue & Sales corporation is the assignor and Creditline LLC is the assignee. Revenue & Sales transferred the benefits of this contract, the $64,500, to CreditLine. But the assignor still has to design the software.