Solution-At what amount should Edwards record the cost of

At what amount should Edwards record the cost of the land

Reference no: EM132885358

Problem - Acquisition of Land and Building - On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2019. Costs incurred during this period are:

Demolition of old building $ 8,000

Architect's fees 25,000

Legal fees for title investigation and purchase contract 4,000

Construction costs 650,000

Edwards sold salvaged materials resulting from the demolition for $2,000.

Required -

1. At what amount should Edwards record the cost of the land and the new building, respectively?

2. If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect on the financial statements?

Reference no: EM132885358

Questions Cloud

What is strategic human resource planning : What is strategic human resource planning?

Promote positive classroom environment : Discuss at least 3 motivational strategies that you can use to promote a positive classroom environment. How does producing a quality lesson plan

Mission and vission influenced organizational practice : How might mission and vission influenced organizational practice

Explain importance of variation to health care organization : Observe the steps performed to serve customers in a doctors office. Explain the importance of variation to health care organizations and answer the following qu

At what amount should Edwards record the cost of the land : Edwards sold salvaged materials resulting from the demolition for $2,000. At what amount should Edwards record the cost of the land and the new building

Prepare the journal entry to record the acquisition : Big Cat estimates that the cost of dismantling and removing the oil rig will be $700,000. Prepare the journal entry to record the acquisition of oil platform

Prepare journal entry to record the acquisition of machine : Note payable in 4 equal annual payments starting in January 2020 $120,000. Prepare the journal entry to record the acquisition of the machine

Determine the cost of the machine : On April 1, it purchased a machine for its assembly line at a contract price of $400,000 with terms of 2/10, n/30. Determine the cost of the machine

Affect educational achievement : Cultural capital from the home - affect educational achievement? How do studies about family size and birth order complicate our understanding of the effect

User Account

All Pages

At what amount should Edwards record the cost of the land

Reference no: EM132885358

Reference no: EM132885358

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Olivares enterprises makes rainberry shampoo for

What is skysong free cash flow

Calculate the closing balance of the control account

Compute the average cost per job for the year

Problem regarding the kind of radiation

What is jennifer qualified business income deduction

What is the opportunity cost of selling the televisions

How to compute the breakeven point in sales dollars

Compute for the goodwill arising from the acquisition

What amount of depreciation expense should be reported

Prepare a schedule to compute equivalent units of production

What would be the total manufacturing cost for the company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT