Question

2. In 2013, Corky St. Clair, an “off-off-off-off” Broadway producer/director moves back to Blaine Missouri and purchases an old movie theater in hopes of reviving the facility for future community theater productions. The purchase price of the property was $150,000. He paid $15,050 to replace the roof, paid $7,643 for wiring and plumbing to meet the city code, and hired local teenagers to sweep and clean the building totaling $320. Additional costs include: $13,000 to remodel backstage offices; $1,200 for advertising opening night; and $3,000 for the post-show party. What is the cost of building?

Answer 1

The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. Thererefore the cost of building will include the purchase orice and all expenditures necessary to prepare the the building for its intended use.
Computation of cost of bulding
Cost	Amount (in $)
Purchase Price	1,50,000
Replacement of roof	15,050
Wiring and plumbing	7,643
Sweep and clean the building	320
Remodel of back stage offices	13,000
Total Cost of building	1,86,013
Note:- $1,200 for advertising opening night and $3,000 for the post-show party will not be included in Cost of building as these expenses were not incurred for bringing the building for its intended use.