Question

On January 1, 2020, Marin Corporation purchased for $720,000 a tract of land (site number 101) with a building. Marin paid a
0 0
Add a comment Improve this question Transcribed image text
Answer #1
1) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 101 as of September 30, 2021
MARIN CORPORATION
Land Account (Site Number 101)
As of September 30, 2021
Acquisition  Cost $    720,000.00
Real estate broker’s commission $      51,840.00
Legal Fees $        8,640.00
Title Insurance $      25,920.00
Cost of razing existing building $      77,760.00
Balance, September 30, 2020 $    884,160.00
2)
MARIN CORPORATION
Capitalized Cost of Office Building
As of September 30, 2021
Contract Cost $ 4,320,000.00
Plans, specifications, and blueprints $      30,240.00
Architects’ fees for design and supervision $    118,080.00
Capitalized interest for 2020 :  $1,872,000 x 10% x 10/12 $    156,000.00
Capitalized interest for 2021:  $2,736,000 x 10% x 9/12 $    205,200.00
Total capitalized cost, September 30, 2021 $ 4,829,520.00
Add a comment
Know the answer?
Add Answer to:
On January 1, 2020, Marin Corporation purchased for $720,000 a tract of land (site number 101)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On January 1, 2020, Marigold Corporation purchased for $680.000 a tract of land (site number 101)...

    On January 1, 2020, Marigold Corporation purchased for $680.000 a tract of land (site number 101) with a building Marigold paid a real estate broker's commission of $48,960, legal fees of $8,160, and title guarantee insurance of $24.480. The dosing statement indicated that the land value was $680,000 and the building value was $136,000. Shortly after acquisition, the building was razed at a cost of $73,440. Marigold entered into a $4,080,000 fixed-price contract with Slatkin Builders, Inc. on March 1,...

  • Problem 10-5 On January 1, 2020, Sheridan Corporation purchased for $680,000 a tract of land (site...

    Problem 10-5 On January 1, 2020, Sheridan Corporation purchased for $680,000 a tract of land (site number 101) with a building. Sheridan paid a real estate broker’s commission of $48,960, legal fees of $8,160, and title guarantee insurance of $24,480. The closing statement indicated that the land value was $680,000 and the building value was $136,000. Shortly after acquisition, the building was razed at a cost of $73,440. Sheridan entered into a $4,080,000 fixed-price contract with Slatkin Builders, Inc. on...

  • On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with...

    On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $740,000. Additionally, Blackstone paid a real estate broker's commission of $50,000, legal fees of $8,000, and title insurance of $25,000. The closing statement indicated that the land value was $570,000 and the building value was $170,000. Shortly after acquisition, the building was razed at a cost of $89,000. Blackstone entered into a $4,400,000 fixed-price contract with Barnett Builders, Inc., on March...

  • On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with...

    On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $630,000. Additionally, Blackstone paid a real estate broker's commission of $39,000, legal fees of $7,500, and title insurance of $19,500. The closing statement indicated that the land value was $515,000 and the building value was $115,000. Shortly after acquisition, the building was razed at a cost of $78,000. Blackstone entered into a $3,300,000 fixed-price contract with Barnett Builders, Inc., on March...

  • On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with...

    On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $740,000. Additionally, Blackstone paid a real estate broker's commission of $50,000, legal fees of $8,000, and title insurance of $25,000. The closing statement indicated that the land value was $570,000 and the building value was $170,000. Shortly after acquisition, the building was razed at a cost of $89,000. Blackstone entered into a $4,400,000 fixed-price contract with Barnett Builders, Inc., on March...

  • On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with...

    On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $740,000. Additionally, Blackstone paid a real estate broker's commission of $50,000, legal fees of $8,000, and title insurance of $25,000. The closing statement indicated that the land value was $570,000 and the building value was $170,000. Shortly after acquisition, the building was razed at a cost of $89,000. Blackstone entered into a $4,400,000 fixed-price contract with Barnett Builders, Inc., on March...

  • On January 1, 2018, the Blackstone Corporation purchased a tract of land (site number 11) with...

    On January 1, 2018, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $620,000. Additionally, Blackstone paid a real estate broker's commission of $38,000, legal fees of $7,000, and title insurance of $19,000. The closing statement indicated that the land value was $510,000 and the building value was $110,000. Shortly after acquisition, the building was razed at a cost of $77,000. Blackstone entered into a $3,200,000 fixed-price contract with Barnett Builders, Inc., on March...

  • Question 9 --/1 View Policies Current Attempt in Progress On January 1, 2020, Blue Corporation purchased...

    Question 9 --/1 View Policies Current Attempt in Progress On January 1, 2020, Blue Corporation purchased for $620,000 a tract of land (site number 101) with a building. Blue paid a real estate broker's commission of $44,640, legal fees of $7,440, and title guarantee insurance of $22,320. The closing statement indicated that the land value was $620,000 and the building value was $124,000. Shortly after acquisition, the building was razed at a cost of $66,960. Blue entered into a $3,720,000...

  • On March 1, 2021, Beldon Corporation purchased land as a factory site for $71,000. An old...

    On March 1, 2021, Beldon Corporation purchased land as a factory site for $71,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building $ 9,500 Architect’s fees (for new building) 10,000 Legal fees for title investigation of land 7,500 Property taxes on land (for period beginning March 1, 2021) 4,100 Construction costs 610,000 Interest on...

  • On March 1, 2021, Beldon Corporation purchased land as a factory site for $76,000. An old...

    On March 1, 2021, Beldon Corporation purchased land as a factory site for $76,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building $ 7,000 Architect’s fees (for new building) 15,000 Legal fees for title investigation of land 3,500 Property taxes on land (for period beginning March 1, 2021) 4,600 Construction costs 660,000 Interest on...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT