A company purchased land on which to construct a new building for a cost of $350,000. Additional costs incurred were:
$\begin{array}{lr}
\text { Real estate broker's commissions } & \$ 24,500 \
\text { Legal fees incurred in purchase of the real estate } & 1,500 \
\text { Landscaping } & 8,000 \
\text { Cost to remove old house located on land } & 3,000 \
\text { Proceeds from selling materials salvaged from old house } & 1,000
\end{array}$
What total dollar amount should be charged to Land and what amount should be charged to Building or other accounts?

Question

A company purchased land on which to construct a new building for a cost of $350,000. Additional costs incurred were:
 $\begin{array}{lr}
\text { Real estate broker's commissions } & \$ 24,500 \
\text { Legal fees incurred in purchase of the real estate } & 1,500 \
\text { Landscaping } & 8,000 \
\text { Cost to remove old house located on land } & 3,000 \
\text { Proceeds from selling materials salvaged from old house } & 1,000
\end{array}$
 What total dollar amount should be charged to Land and what amount should be charged to Building or other accounts?

Quizplus · Accepted Answer

The Answer of A company purchased land on which to construct a new building for a cost of $350,000. Additional costs incurred were:
 $\begin{array}{lr}
\text { Real estate broker's commissions } & \$ 24,500 \
\text { Legal fees incurred in purchase of the real estate } & 1,500 \
\text { Landscaping } & 8,000 \
\text { Cost to remove old house located on land } & 3,000 \
\text { Proceeds from selling materials salvaged from old house } & 1,000
\end{array}$
 What total dollar amount should be charged to Land and what amount should be charged to Building or other accounts?

A Company Purchased Land on Which to Construct a New