Reference no: EM132767861

Question - Sandhill Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery:

Legal fees for title search $510

Property tax in arrears at property purchase date 5,300

Architect's fees 3,100

Cash paid for land and dilapidated building on it 116,000

Removal of old building $20,300

Less: Salvage 5,960 14,340

Surveying before construction 350

Interest on short-term loans during construction 7,300

Excavation before construction for basement and foundation 19,100

Machinery purchased (subject to 2% cash discount, which was not taken) 65,900

Freight on machinery purchased 1,300

Exchange on foreign currency purchase of machinery 1,990

Storage charges on machinery, made necessary because building was still under construction when machinery was delivered 2,160

New building constructed (building construction took six months from date of purchase of land and old building) 485,000

Assessment by city for drainage project 1,700

Fence surrounding the property for security 15,600

Hauling charges for delivery of machinery from storage to new building 630

Installation of machinery 1,900

Customs duty on importing machinery 5,500

Municipal grant to promote locating building in the municipality (8,800)

Required - Determine the amounts that should be included in the cost of land, buildings, and machinery. Also determine the other amounts that are not included in these accounts.