Determine the amounts that the company should record

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Reference no: EM131521450

Question: Italian Pizza Company purchased land as a factory site for $80,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below:

Land clearing costs $ 4,000

Sale of firewood to a worker (500)

Architect fees (for new building) 20,000

Title investigation of land 2,500

Property taxes on land (for the first year) 2,000

Building construction costs 300,000

Required: Determine the amounts that the company should record in the Land and the New Building accounts.

Reference no: EM131521450

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