Reference no: EM132781559
Question - Atikokan Properties purchased land and a building on April 1, 2021.
Other information pertaining to this purchase follows:
Purchase price of land and building $852,278
Appraisal value of land on April 1, 2021 $134,500
Appraisal value of building on April 1, 2021 $740,400
Legal fees for the purchase of the property $8,347
Atikokan renovated the purchased building during the month of April 2021, incurring the following additional costs: $128,246
During the months of May and June 2021, Atikokan constructed a second building on the new property, incurring the following additional costs:
Clearing, grading, and filling the land $25,034
Architectural and design fees $13,176
Land survey costs for building construction site $5,624
Excavation costs $ 6,402
Construction costs $752,797
Paving for driveway to building $32,589
At the conclusion of construction, Atiokan paid the following premium for a one-year policy to insure the building $4,994
On December 31, 2021, Atiokan received a special assessment from the municipality for road improvements in the following amount $8,033
REQUIRED - Determine the total cost of each of the following assets and prepare any journal entries required for each of the above transactions:
Land
Building 1 (Original building)
Building 2 (Newly constructed building)
Land Improvements
(Round any calculations to nearest whole percentage)
Assume that all costs were paid in cash.