In: Accounting
1.Following are costs incurred in the past year involved with the opening of a new branch in a company. Use the following information to calculate the total amount that was debited to the land account.
Description |
Amount |
Fee for Title |
300 |
Architect Fee |
3,100 |
Cash paid for land and old building |
80,000 |
Remova lof building |
7,000 |
Salavage Value of Building Removed |
1,000 |
Purchased machinery |
10,000 |
New building constructed |
500,000 |
Assessment by city for building permit |
600 |
Installation on machinery |
1,500 |
Tree's and landscaping |
5,000 |
Cost of Land :
a)Cash paid for land and old building $80000
b)Fee for Title $300
c)Tree's and landscaping $5000
d)Remova lof building $7,000
e)Salavage Value of Building Removed ($1,000)
Cost Of land to be Debited(a+b+c+d-e) = $91300
Explanation :
Note : Architect Fee, Assessment by city for building permit are the cost related to building hence they will form part of the building not land