Allen co purchased land as a factory site for 80000 the

Reference no: EM13391643

Allen Co. purchased land as a factory site for $80,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $8,400 to raze the old buildings and sold salvaged lumber and brick for $1,260. It paid legal fees of $370 for title investigation and drawing up the purchase contract. Allen paid $440 to an engineering firm for a land survey, and $13,600 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $300, and a liability insurance premium paid during construction was $180. The contractor's charge for construction was $548,000. The company paid the contractor in two installments: $240,000 at the end of 3 months, and $308,000 upon completion. Interest costs of $34,000 were incurred to finance the construction.

Instructions

Determine the cost of the land and the cost of the building as they should be recorded on the books of Allen Co. Assume that the land survey was for the building.

Reference no: EM13391643

Questions Cloud

Describe the impact of an individuals personality on work : employees are all unique. this uniqueness makes them valuable because in that individual approach to work each employee

While if two firms enter it would increase elasticity of : what is limit pricing? a suppose your firm produces a product at a constant marginal cost equal to 1. suppose the

Assume the firm produces electricity by burning coal : suppose your firm produces electricity by burning coal. currently it buys central appalachia 12500 btu per ton coal at

Rita jenkins president of the local chamber of commerce had : rita jenkins president of the local chamber of commerce had difficulty getting members to assist in running the

Allen co purchased land as a factory site for 80000 the : allen co. purchased land as a factory site for 80000. the process of tearing down two old buildings on the site and

Based on your readings or any additional research you may : a client comes to you thinking about starting a consulting business. your client is specifically interested in what

At last assume type 1 buyers have price elasticity of : suppose you have two types of customers. type 1 customers typically purchases your firms product in bundles of 100

Brands can play a number of specific roles in a companys : brands can play a number of specific roles within a companys brand portfolio. for example a is positioned with respect

What is a current liability from the perspective of a user : what is a current liability? from the perspective of a user of financial statements why do you believe current

User Account

All Pages