Determine the amounts that beldon should capitalize

Assignment Help Accounting Basics
Reference no: EM13999445

On March 1, 2011, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2011. Costs incurred during this period are listed below:

Demolition of old building ..............$ 4,000
Architect's fees (for new building) ...........$ 12,000
Legal fees for title investigation of land ..........$ 2,000
Property taxes on land (for period beginning March 1, 2011) .$ 3,000
Construction costs .................$ 500,000
Interest on construction loan ..............$ 5,000
Salvaged materials resulting from the demolition of the old building were sold for $2,000.

Required:

Determine the amounts that Beldon should capitalize as the cost of the land and the new building.

Reference no: EM13999445

Questions Cloud

How much power refrigerator draw from main wall power point : Suppose that heat leaks into your kitchen electric refrigerator at an average rate of 300 W. Assuming ideal operations, estimate how much power must the refrigerator draw from the main wall power point?
Calculate the amount of interest capitalized for the year : Refer to the situation described in BE 10-14. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year.
What amount should maxtor report as research : What amount should Maxtor report as research and development expense in its income statement?
Why does a demand curve slope downward : Explain the law of demand and draw graphs to support your answer. Why does a demand curve slope downward? What are the determinants of demand? Distinguish between a change in demand and a movement along a fixed demand curve, noting the causes of each..
Determine the amounts that beldon should capitalize : Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
What differences do you see in the techniques employed : How do you feel that this case impacted the field of death investigation? What differences do you see in the techniques employed in the year 1888 and present day death investigation
An energy manager expects a need for a boiler that costs : An energy manager expects a need for a boiler that costs $150,000 in about seven years. How much money should the manager save each year to have enough money for the purchase in seven years time if the interest rate is (a) 10% and (b) 3%.
Oaktree company purchased a new machine : The machine, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Savings account pays : After getting her first job, a college graduate wants to begin saving money so she can pay cash for a new car. She wants to save enough each month to have $24,000 at the end of 5 years, and her savings account pays 6% interest, compounded monthly. Ho..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Fundamental factors affecting the cost of money

which is the rate users pay to providers. For debt, we call this price the interest rate. For equity, we call this price the cost of equity. Discuss the four most fundamental factors affecting the cost of money.

  A company is considering the purchase of a new machine for

a company is considering the purchase of a new machine for 48000. management predicts that the machine can produce

  In comparing the canceled checks on the bank statement with

in comparing the canceled checks on the bank statement with the entries in the accounting records it is found that

  Slick corporation is a small producer of synthetic motor

slick corporation is a small producer of synthetic motor oil. during may the company produced 5000 cases of lubricant.

  At the end of the meal the issue arises of how the bill for

at the end of the meal the issue arises of how the bill for the group should be shared. one alternative is to figure

  Compute the exact rate of interest earned on the mortgage

The first payment will be made 6 months after the date the mortgage is signed. Using a financial calculator, compute the exact rate of interest earned on the mortgage by the bank.

  An employee earns 6050 per month working for an employer

an employee earns 6050 per month working for an employer. the fica tax rate for social security is 6.2 and the fica tax

  Effect on the price and quantity of minivans

Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw the diagram to show the effect on t..

  The market value of dylan corporation common stock

The market value of Dylan Corporation's common stock had become excessively high.

  Recently been promoted to senior financial analyst

Recently been promoted to senior financial analyst,

  Vest corporation sells and issues 100 shares of its 10 par

vest corporation sells and issues 100 shares of its 10 par value common stock as 11 per share. show how this

  A project will require an initial investment of 250000 and

a project will require an initial investment of 250000 and will return 50000 each year for seven years. if taxes are

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd