Reference no: EM132724590
Land and Building Cost The following expenditures were incurred by Lyon Enterprises Co. in 2019:
Purchase of land P 3,900,000
Land Survey 52,000
Fees for search of title for land 6,000
Building permit 35,000
Temporary quarters for construction crews 107,500
Payment to tenants of old building for vacating the premises 46,000
Razing old building 470,000
Excavating basement 100,000
Special assessment tax for street project 20,000
Dividends 50,000
Damages awarded for injuries sustained in construction 84,000
Cost of construction 29,000,000
Cost of paving parking lot adjoining building 400,000
Cost of shrubs, trees, and other Landscaping 330,000
Required:
Problem 1. Among the expenditures mentioned, determine the cost of land.
Problem 2. Among the expenditures mentioned, determine the cost of the building.