Wang Apartments purchased an apartment building to rent to university students on November 18,2013.The following costs were incurred during 2013,before the tenants moved in: How much will Wang Apartments record as an asset?

Question

Wang Apartments purchased an apartment building to rent to university students on November 18,2013.The following costs were incurred during 2013,before the tenants moved in:  How much will Wang Apartments record as an asset?

Quizplus · Accepted Answer

Wang Apartments will record the purchase price of $320,000 plus the closing costs of $20,000 and the renovation costs of $11,000 as the cost of the building. Therefore, the total cost that Wang Apartments will record as an asset is $320,000 + $20,000 + $11,000 = $351,000, which is option C.

Wang Apartments Purchased an Apartment Building to Rent to University