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Keith_Richards [23]
3 years ago
13

On March 1, 2017, Carla Vista Co. acquired real estate, on which it planned to construct a small office building, by paying $84,

500 in cash. An old warehouse on the property was demolished at a cost of $9,100; the salvaged materials were sold for $1,880. Additional expenditures before construction began included $1,380 attorney’s fee for work concerning the land purchase, $4,950 real estate broker’s fee, $8,880 architect’s fee, and $14,900 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.
Business
1 answer:
marissa [1.9K]3 years ago
5 0

Answer:

Land 112,980

Explanation:

The driveway and parking lot are not part of the land. That is a decision of the company and will be applied on a diferent account, Parking lot

All the other cost are required to acquire the land and leave the land ready to use.

The salvage for the demolition decrease the cost for the land.

Purchase              84,500

demolition               9,100

salvaged materials (1,880)

atorney's fee           1,380

broker's fee            4,980

architect's fee       14,900

Total                     112,980

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Answer:

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Explanation:

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2 years ago
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3 years ago
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Answer:

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