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Check my work Samtech Manufacturing purchased land and building for $5 million. In addition to the purchase price, Samtech maCheck my work Samtech Manufacturing purchased land and building for $5 million. In addition to the purchase price, Samtech ma

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Answer #1
Computation Of Cost Of Land And Building
Purchase Price $       50,00,000
Add: $             28,000
Title Insurance Cost
Legal Fees $                6,000
State Transfer Fees $                5,200
Total Costs $       50,39,200
Note: Property tax shall not form the part of the acquisition.
Allocation Of Land And Building
Fair Value Weight Initial Valuation
Land 3.6 0.6 $       30,23,520
Building 2.4 0.4 $       20,15,680
6 $       50,39,200
Land Improvement
Parking Lot $           94,000
Lanscaping $           52,000
Total $       1,46,000
Summary For Answer to Q1
Land 3023520
Building 2015680
Land Improvement $       1,46,000
Computation Of Cost Of Land And Building
Purchase Price $       50,00,000
Add:
Title Insurance Cost $             28,000
Legal Fees $                6,000
State Transfer Fees $                5,200
Demolition of old building $          3,70,000
Land Clearing Expenses $             91,000
Less: Salvage Material $              -7,000
Total Cost Of Land $       54,93,200
Land Improvement
Parking Lot $           94,000
Lanscaping $           52,000
Total $       1,46,000
Summary For Answer to Q2
Land $     54,93,200
Building 0
Land Improvement $       1,46,000
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