On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,600,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below.
Required:1)What is the capitalized cost of the land?2)What is the capitalized cost of the factory building?

Question

On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,600,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below.
  Required:1)What is the capitalized cost of the land?2)What is the capitalized cost of the factory building?

Quizplus · Accepted Answer

The Answer of On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,600,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below.
  Required:1)What is the capitalized cost of the land?2)What is the capitalized cost of the factory building?

On May 4, Year 1, Steger Company Purchased a Tract