In 20X4, X Company purchased land for a new office building at a purchase price of $325,000. There was an existing building on t
he site that was demolished at a cost of $12,000. Scrap from the demolition was sold for $3,500. The building was completed during 20X4. In addition:
1 answer:
Answer:
$359,000 and $1,323,000
Explanation:
The computation of the amount reported for land and building is shown below:
For land
= Purchase price + attorneys + demolishing cost - scrap value + engineering fees
= $325,000 + $7,500 + $12,000 - $3,500 + $18,000
= $359,000
For buidling
= Architect fees + building permits + construction cost
= $40,000 + $8,000 + $1,275,000
= $1,323,000
You might be interested in