Reference no: EM132149602
Question - Murphy Self Storage purchased land, paying $175,000 cash as a down payment and signing a $150,000 note payable for the balance. Murphy also had to pay delinquent property tax of $3,500, title insurance costing $1,500, and $8,000 to level the land and remove an unwanted building. The company paid $58,000 to add soil for the foundation and then constructed an office building at a cost of $1,000,000. It also paid $54,000 for a fence around the property, $20,000 for the company sign near the property entrance, and $12,000 for lighting of the grounds.
The cost of the land is $338,000.
What is the cost of land improvement?
What is the cost of building?
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