Reference no: EM132713333

Question - Dawn Company, a newly formed corporation, incurred the following expenditures related to land and building.

Cash paid for land and dilapidated building 5,000,000

Removal of old building 100,000

Payment to tenants for vacating old building 50,000

Architect fee for new building 250,000

Building permit for new construction 50,000

Fee for title search 30,000

Survey before constructing of new building 150,000

Excavation before new construction 500,000

New building constructed 20,000,000

Assessment by city for drainage project 20,000

Cost of grading, leveling and other landscaping 200,000

Driveways and walks to new building from street (part of building plan) 300,000

Temporary quarters for construction crew 50,000

Temporary building to house tools and materials 50,000

Cost of changes during construction to make new building more energy efficient 100,000

Cost of windows broken by vandals 200,000

Required -

1. What is the cost of the land?

2. What the total cost of depreciable property?

3. How much is the amount expensed outright?