February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of...
February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $112,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were:
|
Item |
Amount |
|
Demolition dilapidated building |
$2,000 |
|
Architect Fees |
$11,250 |
|
Legal Fees - for title search |
$1,450 |
|
Interest During Active Construction Period |
$5,025 |
|
Real estate transfer tax |
$750 |
|
Construction Costs |
$605,000 |
Using this information, how much should be recorded as the cost of the land?
Homework Answers
Cost of land = Cost 112,000 + demolition cost 2000 + legal fees 1450
= 115,450
Comment if you face any issues
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February 1, 2018, Salisbury Company purchased land for
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