A company purchased land on which to construct a new building for a cost of $250,000. Additional costs incurred were: $$\begin{array} { | l | r | }
\hline \text { Real estate broker's commissions } & \$ 15,000 \
\hline \text { Legal fees incurred in purchase of the real estate } & 2,500 \
\hline \text { Landscaping } & 10,000 \
\hline \text { Expenses to remove old house located on land } & 3,000 \
\hline \text { Proceeds from selling materials salvaged from old house } & 1,000 \
\hline
\end{array}$$
What total dollar amount should be charged to Land and what amount should be charged to the new Building?

Question

A company purchased land on which to construct a new building for a cost of $250,000. Additional costs incurred were: $$\begin{array} { | l | r | } 
\hline \text { Real estate broker's commissions } & \$ 15,000 \
\hline \text { Legal fees incurred in purchase of the real estate } & 2,500 \
\hline \text { Landscaping } & 10,000 \
\hline \text { Expenses to remove old house located on land } & 3,000 \
\hline \text { Proceeds from selling materials salvaged from old house } & 1,000 \
\hline
\end{array}$$
What total dollar amount should be charged to Land and what amount should be charged to the new Building?

Quizplus · Accepted Answer

The Answer of A company purchased land on which to construct a new building for a cost of $250,000. Additional costs incurred were: $$\begin{array} { | l | r | } 
\hline \text { Real estate broker's commissions } & \$ 15,000 \
\hline \text { Legal fees incurred in purchase of the real estate } & 2,500 \
\hline \text { Landscaping } & 10,000 \
\hline \text { Expenses to remove old house located on land } & 3,000 \
\hline \text { Proceeds from selling materials salvaged from old house } & 1,000 \
\hline
\end{array}$$
What total dollar amount should be charged to Land and what amount should be charged to the new Building?

A Company Purchased Land on Which to Construct a New