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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 15
Determining the cost of assets
Ogden Furniture, Co., purchased land, paying $70,000 cash plus a $300,000 note payable. In addition, Ogden paid delinquent property tax of $2,500, title insurance costing $2,000, and $8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $700,000. It also paid $55,000 for a fence around the property, $18,000 for a sign near the entrance, and $10,000 for special lighting of the grounds.
Requirements
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Ogden depreciate
Ogden Furniture, Co., purchased land, paying $70,000 cash plus a $300,000 note payable. In addition, Ogden paid delinquent property tax of $2,500, title insurance costing $2,000, and $8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $700,000. It also paid $55,000 for a fence around the property, $18,000 for a sign near the entrance, and $10,000 for special lighting of the grounds.
Requirements
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Ogden depreciate
Explanation
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2.
Step 1 Read the exercise.
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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