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elixir [45]
3 years ago
8

Wen Co. purchased a building for $200,000. Wen paid $20,000 in lawyer and title fees. Wen also paid an additional $15,000 to mod

ify the building in order to accommodate his business needs. Wen should record the cost of the building at:
Business
1 answer:
Alexeev081 [22]3 years ago
4 0

Answer:

$235,000

Explanation:

A company can capitalize the cost of assets, delivery cost, legal & documentation charge and any other directly attributable cost that is incurred to bring the asset in the condition as intended by management.

Therefore, cost of asset, title fee and building modification fee shall be added in the cost of asset as follows:

Cost of Asset                           200,000

Lawyer and title fee                   20,000

Building Accommodation        <u>   15,000</u>

Total                                          <u>235,000</u>

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a. There are significant differences in incomes between high- and low-income countries.

Explanation:

Data provided in the question

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3 years ago
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