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natali 33 [55]
3 years ago
14

On February 1, 2017, Nelson Corporation purchased a parcel of land as a factory site for $320,000. An old building on the proper

ty was demolished, and construction began on a new building which was completed on November 1, 2017. Costs incurred during this period are listed below:
Demolition of old building $ 20,000

Architect's fees 35,000

Legal fees for title investigation and purchase contract 5,000

Construction costs 1,390,000

(Salvaged materials resulting from demolition were sold for $10,000.)

Nelson should record the cost of the land and new building, respectively, as?

a. $345000 and $1415000.

b. $330000 and $1430000.

c. $330000 and $1425000.

d. $335000 and $1425000.
Business
1 answer:
vladimir2022 [97]3 years ago
4 0

Answer:

$335000 and $1425000

Explanation:

The values given are:

-Demolition of old building=$ 20,000

-Architect's fees=$35,000

-Legal fees for title investigation and purchase contract=$5,000

-Construction costs=$1,390,000

-Salvaged materials resulting from demolition=$10,000

-Cost of factory site= $320000

Therefore,

1) The cost of land is:

$320000+$5000+$20000-$10000

= $335000

2) The cost of the new building is:

$35000+$1390000

= $1425000

Thus, the cost of the land and new building is $335000 and $1425000 respectively.

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I think your answer would be B: Journal.

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Ray's Sounds has accumulated the following cost and market data on March 31: Cost Data Market Data iPods $24,000 $20,400 Cell ph
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Answer:

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The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The fini
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Answer:

Instructions are below.

Explanation:

Giving the following information:

The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,600 units.

<u>We weren't provided with enough information to solve the problem. But, I will leave the formula and a small example to guide an answer.</u>

<u></u>

Purchases= sales + desired ending inventory - beginning inventory

For example:

Sales 2nd Quarter= 27,000 units

Sales 3rd Quarter= 45,000 units

Production budget (in units):

Sales= 27,000

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Cheryl Peterson, a U.S.-based business executive, paid the equivalent of $20 to an official of the country of Murundi to expedit
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Answer:

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