Reference no: EM133100815
Question - Acquisition Cost of Long-Lived Assets - The following items represent expenditures (or receipts) related to the construction of a new home office for Norma Company.
Cost of land site (which included an old apartment building appraised at 75,000) $180,000
Legal fees, including fee for title search 2,100
Payment of apartment building mortgage and related interest due at time of sale 9,300
Payment for delinquent property taxes assumed by the purchaser 6,000
Cost of razing the apartment building 19,000
Proceeds from sale of salvaged materials (3,800)
Grading to establish proper drainage flow on land site 2,100
Architect's fees on new building 310,000
Proceeds from sales of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property) (2,000)
Payment to building contractor 5,000,000
Payment of medical bills of employee accidentally injured while inspecting building construction 1,600
Special assessment for paving city sidewalks (paid to city) 20,000
Cost of paving driveway and parking lot 30,000
Cost of installing lights in parking lot 9,500
Premium for insurance on building during construction 7,800
Cost of open house party to celebrate opening of new building 10,000
Required - From the given data, calculate the proper balances for the Land, Building, and Land Improvements accounts of Norma Company.