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Determine the purchase cost of each asset

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Problem - Lam Company purchased the following long-term assets. Determine the purchase cost of each asset.

(a) Ten computers:

Purchase price $60,000

Transportation costs 500

Insurance during transportation 100

Installation 800

Interest on loan to purchase computers 3,000

(b) Three acres of land:

Purchase price $30,000

Grading of land in preparation to build 10,000

Planting of trees around border 5,000

Fence on southern border 3,000

Tax assessment for sewer 1,000

Legal fees related to purchase 900

(c) Five-thousand-square-foot building:

Purchase price $102,000

Real estate fees 5,000

Land on which building is located 10,000

Legal fees related to purchase 600

Taxes related to purchase 800

Interest on mortgage to buy building 300

Reference no: EM132723163

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