Question

# Vijay Inc. purchased a three-acre tract of land for a building site for \$320,000. On the...

Vijay Inc. purchased a three-acre tract of land for a building site for \$320,000. On the land was a building with an appraised value of \$120,000. The company demolished the old building at a cost of \$12,000, but was able to sell scrap from the building for \$1,500. The cost of title insurance was \$900 and attorney fees for reviewing the contract were \$500. Property taxes paid were \$3,000, of which \$250 covered the period subsequent to the purchase date. The capitalized cost of the land is:

A. \$336,400.

B. \$336,150.

C. \$334,650.

D. \$201,150.

#### Homework Answers

Answer #1
 Capitalized cost of land = 320,000 + 12,000 - 1,500 + 900 + 500 + (3000-250) = 334,680 Option C is the answer Comment if you face any issues
Know the answer?
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
• ### Vijay Inc. purchased a three-acre tract of land for a building site for \$250,000. On the...

Vijay Inc. purchased a three-acre tract of land for a building site for \$250,000. On the land was a building with an appraised value of \$129,000. The company demolished the old building at a cost of \$13,000, but was able to sell scrap from the building for \$1,670. The cost of title insurance was \$800 and attorney fees for reviewing the contract were \$570. Property taxes paid were \$3,500, of which \$290 covered the period subsequent to the purchase date....

• ### Vijay Inc. purchased a three-acre tract of land for a building site for \$250,000. On the...

Vijay Inc. purchased a three-acre tract of land for a building site for \$250,000. On the land was a building with an appraised value of \$122,000. The company demolished the old building at a cost of \$12,900, but was able to sell scrap from the building for \$1,700. The cost of title insurance was \$890 and attorney fees for reviewing the contract were \$430. Property taxes paid were \$3,700, of which \$240 covered the period subsequent to the purchase date....

• ### 5 points Save Answ Vijay Inc purchased a three-acre tract of land for a building site...

5 points Save Answ Vijay Inc purchased a three-acre tract of land for a building site for \$410,000. On the land was a building with an appraised value of \$130.000. The company demolished the old building at a cost of \$11.900, but was able to sell scrap from the building for \$1600. The cost of title insurance was 5930 and attorney fees for reviewing the contract were 5500 Property taxes paid were \$3000, of which \$350 covered the period subsequent...

• ### 22. Robertine purchased a three-acre tract of land for a building site for \$400,000. On the...

22. Robertine purchased a three-acre tract of land for a building site for \$400,000. On the land was a building with an appraised value of \$129,000. The company demolished the old building at a cost of \$12.600, but was able to sell scrap from the building for \$1.500. The cost of title Insurance was 5870 and attomey fees for reviewing the contract were 5120 Property taxes paid were 2.200, of which \$300 covered the period subsequent to the purchase date....

• ### 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...

• ### 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...

• ### A company purchased a \$500,000 tract of land that is intended to be the site of a new office complex. The company incur...

A company purchased a \$500,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds as follows: Demolition of existing building on site Legal and other fees to close escrow Proceeds from sale of demolition scrap \$75,000 15,000 10,000 What would be the capitalized cost of the land? Multiple Choice 0 O \$500,000 0 \$575,000 0 \$580,000. 0 \$590,000

• ### 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...

• ### Exercise 10-1 Acquisition costs; land and building [LO10-1] On March 1, 2018, Beldon Corporation purchased land...

Exercise 10-1 Acquisition costs; land and building [LO10-1] On March 1, 2018, Beldon Corporation purchased land as a factory site for \$73,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2018. Costs incurred during this period are listed below: Demolition of old building \$ 5,500 Architect’s fees (for new building) 12,000 Legal fees for title investigation of land 2,000 Property taxes on land (for period beginning March...

• ### On January 1, 2020, Marin Corporation purchased for \$720,000 a tract of land (site number 101)...

On January 1, 2020, Marin Corporation purchased for \$720,000 a tract of land (site number 101) with a building. Marin paid a real estate broker's commission of \$51,840, legal fees of \$8,640, and title guarantee insurance of \$25,920. The closing statement indicated that the land value was \$720,000 and the building value was \$144,000. Shortly after acquisition, the building was razed at a cost of \$77,760. Marin entered into a \$4,320,000 fixed-price contract with Slatkin Builders, Inc. on March 1,...

ADVERTISEMENT
Free Homework Help App

Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?

Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT