These expenditures were incurred by Shumway Ltd. in purchasing land: cash price $54,820; legal...
Question:
These expenditures were incurred by Shumway Ltd. in purchasing land: cash price $54,820; legal fees $2,210; removal of old building $5,170; the cost of clearing and grading $4,430; installation of fence $2,660. What is the cost of the land?
Cost of Land:
Accounting for land is different than the other assets because depreciation is not charged against land. Cost of land includes all the costs which has been incurred to make the land ready to use.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerCost of land will include all the costs which has been incurred to make the land available to use.
It includes price of land, legal fee, removal of...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
What Are Fixed Assets? - Definition & Examples
from
Chapter 3 / Lesson 10
9.3K
Learn the definition of fixed assets and examine their importance. Explore the various types of fixed assets, identify their characteristics, and see examples.
Related to this Question
- The following costs were incurred by Shumway Company in purchasing land: Cash price $84,000 Removal of the old building $5,200 Legal fees $3,000 Clearing and grading $3,500 Installation of a fence $3,
- These expenditures were incurred by Patnode Company in purchasing land: cash price $60,000; accrued taxes $5,000; attorney's fees $2,100; real estate broker's commission $3,300; and clearing and grading $3,500. What is the cost of the land?
- Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $ 21,000 Legal fees for drawing the con
- The following expenditures were incurred by McCoy Company in purchasing land: Cash price $79,000 Accrued taxes $2,800 Attorneys' fees $3,900 Real estate broker's commission $1,100 Clearing and grading $4,000. What is the cost of the land?
- The following expenditures were incurred by McCoy Company in purchasing land: Cash price $68,000 Accrued taxes $3,500 Attorneys' fees $4,200 Real estate broker's commission $1,000 Clearing and grading $3,800 What is the cost of the land?
- The following expenditures were incurred by McCoy Company in purchasing land: Cash price $75,000 Accrued taxes $5,400 Attorney's fees $2,800 Real estate broker's commission $1,200 Clearing and grading $4,200 What is the cost of the land?
- The following expenditures were incurred by McCoy Company in purchasing land: cash price $80,000, accrued taxes $3,000, attorneys' fees $4,200, real estate broker's commission $2,100, and clearing and grading $3,200. What is the cost of the land?
- The following expenditures were incurred by McCoy Company in purchasing land: cash price $80,000, accrued taxes $3,500, attorneys' fees $2,100, real estate broker's commission $1,600, and clearing and grading $5,100. What is the cost of the land?
- RT Inc. purchased a tract of land for use as a factory site. The purchase price was $780,000. RT also incurred the following costs: Cost to raze old building ($70,000), legal fees related to the purchase contract ($10,000), and proceeds from the sale of s
- The following expenditures were incurred by McCoy Company in purchasing land: cash price $50,000, accrued taxes $3,000, attorneys fees $2,500, real estate broker's commission $2,000, and clearing and grading $3,500. What is the cost of the land?
- Keaubie Co. purchased land at a cost of $250,000 cash. The property had a building on it that was demolished at a cost of $10,000. Proceeds from salvaged materials from the demolition amounted to $2,100. Attorney's fees were $3,100 and the real estate bro
- The following expenditures were incurred by Obermeyer Company in purchasing land: cash price $71,722, accrued taxes $3,898, attorneys' fees $1,949, real estate broker's commission $1,539, and clearing and grading $4,237. What is the cost of the land?
- Which of the following costs associated with a land purchase is not a component of the land cost reported on a balance sheet? a. the payment of delinquent property taxes b. the incurrence of legal fees c. the cost of title insurance d. the land's appraise
- Samtech manufacturing purchased land and building for $6 million. In addition to the purchase following expenditures were made in connection with the purchase of the land and the building: Title insurance $27,000 Legal fees $5,500 Pro-rated property taxes
- Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to rebuild an office building. What amount should be recorded for the purchase of the land? Sale price of the land = $480,000 Sale of salvaged
- Lake Company recently incurred the following costs: 1. Purchase price of land and dilapidated building $250,000. 2. Real estate broker's commission is $14,000. 3. Net demolition costs of dilapidated building $39,000. 4. Excavation costs for new buildi
- Macro Co. purchased land as a factory site for $600,000. Macro paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,840 were paid for title investigation prior to the purchase of the land. Architect fee's were
- The removal of an old building to make land suitable for its intended use is charged to: a. Repairs expense b. Land c. Buildings. d. Land Improvements
- Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: | Sale price of the land| $400,000 | Sale of salvaged
- Samtech Manufacturing purchased land and building for $5 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $24,000 Legal fees for drawing the contr
- Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $25,000 Legal fees for drawing the cont
- Lake Company recently incurred the following costs: 1. Purchase price of land and dilapidated building $250,000. 2. Real estate broker's commission is $14,000. 3. Net demolition costs of dilapidated building $39,000. 4. Excavation costs for new buil
- Alin Co. purchases a building for $300,000 and pays an additional $30,000 for closing costs (brokerage, title, attorney fees). Alin also pays $20,000 in renovations, including painting, carpet, lighting, etc. Alin should record the cost of the building at
- Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Sale price of the land $620,000 Sale of salvaged parts
- What is the cost of the land, based upon the following data? Land purchase price $178,000 Broker's commission $15,000 Payment for the demolition and removal of existing building $5,000 Cash received from the sale of materials salvaged from the demolished
- A company purchases property that includes land, buildings and equipment for $4.6 million. The company pays $185,000 in legal fees, $212,000 in commissions, and $107,000 in appraisal fees. The land is estimated at 26%, the buildings are at 44%, and the eq
- The land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct a fence, and a legal fee of $8,500. What is the cost of the land?
- The land is purchased for $456,000. Additional costs include a $30,300 fee to a broker, a survey fee of $3,400, $2,750 to construct a fence, and a legal fee of $12,500. What is the cost of the land?
- Land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct a fence, and a legal fee of $8,500. What is the cost of the land?
- Land is purchased for $400,000. Back taxes, paid by the purchaser, were $6,900; total costs to demolish an existing building were $13,000, and the cost to clear the land was $18,000. The cost of pavin
- During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building: Purchase price of land - $60,000 ; Legal fees for contracts to purchase lan
- Company D purchases land for RO50,000 and spend RO1,000 and RO4,000 on building a fence and a parking lot, respectively. These improvements have a 5-year life. Prepare an entry for all the costs incurred.
- The following expenditures were incurred by Peterson Enterprises Co. in 2008: Purchase of land $270,000 Land survey 4,800 Fees for search of title for land 500 Building permit 4,000 Temporary quarters for construction crews 11,200 Payment to tenants of ol
- During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building: Purchase price of land $60,000 Legal fees for contracts to purchase land
- Shahia Company bought a building for $85,000 cash and the land on which it was located for $113,000 cash. The company paid transfer costs of $15,000 ($4,000 for the building and $11,000 for the land).
- Land is purchased for $400,000. Back taxes paid by the purchaser were $6,900; total costs to demolish an existing building were $13,000 and the cost to clear the land was $18,000. The cost of paving t
- A company purchased land for $80,000 cash. The real estate brokers' commission was $6,000 and $9,500 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, what would the cost of
- Fraser Manufacturing purchased land next to its factory to be used as a parking lot. The following expenditures were incurred by the company: Purchase price $299,000 Broker's fees $24,900 Title search and other fees $2,200 Demolition of a cottage on the p
- A company purchased land for $540,000 cash. The real estate brokers' commission was $20,000 and $47,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost
- The land was acquired in 2000 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. T
- The land was acquired in 2016 for a future building site at a cost of $40,300. The assessed valuation for tax purposes is $28,000, a qualified appraiser placed its value at $50,000, and a recent firm offer for the land was for a cash payment of $44,000. T
- A company purchased land for $90,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be r
- A company purchased land for $70,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be r
- Land and a building on the land are purchased for $310,000. The appraised values of the land and building are $66,000 and $264,000, respectively. The cost allocated to the building should be: a. $25,200 b. $109,800 c. $135,000 d. $248,000
- Acme Investments plans to develop a shopping center. In the first quarter, they spent the following amounts: \\ Purchase land: $100,000 Surveys and legal fees: $1,200 Land clearing: $5,000 Install fences around the property: $4600 Install lighting and si
- 1. During 2016, Pentz Company had the following transactions pertaining to its new office building: Purchase price of land $66,000 Legal fees for contracts to purchase land 2,200 Architects? fees 8,80
- Land and a building on the land are purchased for $336,000. The appraised values of the land and building are $60,000 and $300,000, respectively. The cost allocated to the building should be: a. $28,000. b. $122,000. c. $150,000. d. $280,000.
- A company purchases property that includes land, buildings and equipment for $5.5 million. The company pays $180,000 in legal fees, $220,000 in commissions, and $100,000 in appraisal fees. The land is
- A company purchases property that includes land, buildings, and equipment for $4.8 million. The company pays $176,000 in legal fees, $229,000 in commissions, and $100,000 in appraisal fees. The land i
- A company purchases property that includes land, buildings and equipment for $5.4 million. The company pays $186,000 in legal fees, $221,000 in commissions, and $117,000 in appraisal fees. The land is
- A company purchases property that includes land, buildings and equipment for $4.7 million. The company pays $181,000 in legal fees, $224,000 in commissions, and $112,000 in appraisal fees. The land is
- A company purchases property that includes land, buildings and equipment for $5.4 million. The company pays $186,000 in legal fees, $219,000 in commissions, and $119,000 in appraisal fees. The land is
- A company purchases property that includes land, buildings and equipment for $4.6 million. The company pays $174,000 in legal fees, $227,000 in commissions, and $113,000 in appraisal fees. The land is
- David Inc. incurred the following costs associated with the purchase of a piece of land that it will use to build an office building: Sale price of land $500,000 Sale of salvaged material on land $20,000 Demolition of an old building on land $10,000 Groun
- A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400, and $5,850 was paid to remove an old building from which salvaged materials sold for $950. What is the cost basi
- Riverbed Inc. purchased land at a price of $31,300. Closing costs were $3,280. An old building was removed at a cost of $11,030. What amount should be recorded as the cost of the land?
- Semtech Manufacturing purchased land and building for $8 million. In addition to the purchase price, Semtech made the following expenditures in connection with the purchase of the land and building: Title insurance $22,000 Legal fees for drawing the contr
- A company purchased land for $75,000 cash. Real estate brokers' commission was $4,000 and $11,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, what would the
- On March 1, 2016, S Company acquired real estate, on which it planned to construct a small office building, by paying $90,000 in cash. An old warehouse on the property was demolished at a cost of $8,2
- Previn Brothers Inc. purchased land at a price of $35,980. Closing costs were $1,980. An old building was removed at a cost of $13,820. What amount should be recorded as the cost of the land?
- Previn Brothers Inc. purchased land at a price of $28,000. Closing costs were $1,500. An old building was removed at a cost of $10,300. What amount should be recorded as the cost of the land?
- Previn Brothers Inc. purchased land at a price of $27,000. Closing costs were $1,400. An old building was removed at a cost of $10,200. What amount should be recorded as the cost of the land?
- The falcon company acquired an adjacent lot to construct a new warehouse, paying $40,000 and giving a short term note for $410,000. Legal fees paid were $13,275, delinquent taxes assessed were $14,500 and fees paid to remove an old building from the land
- Darrin Brown bought a pub. The purchase price was $695,000. An appraiser provided the following appraisal values: land $320,000, building $370,000, and equipment $60,000. What cost should be allocated to the building?
- The following payments and receipts are related to land, land improvements, and buildings acquired for use in the wholesale apparel business. The receipts are identified by an asterisk. a. Fee paid to the attorney for title search $3,600 b. Cost of real e
- Levi purchases land for $110,000. He incurs legal fees of $1,000 associated with the purchase. He subsequently incurs additional legal fees of $4,000 in having the land rezoned from agricultural to residential. He subdivides the land and installs streets
- Reiley Co. purchased land as a factory site for $1,000,000. Reiley paid $40,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Title insurance costs $2,4
- Costs of government permits required to develop land for a new business location. Are classified as: A. Buildings B. Machinery and Equipment C. Land D. Land Improvements
- Jefferson Cleaners purchased a tract of land, a small office building, and some equipment for $1,500,000. The appraised value of the land was $850,000, the building $675,000, and the equipment $475,000. What amount is recorded as the cost of the land? A)
- Airport Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building: a. Purchase price of 3 acres of land $82,000 b. Delinquent real estate taxes on the land to be paid by Air
- Bridge City Consulting bought a building and the land on which it is located for $145,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $15,000 for building renovations before it was ready for use. a. Record
- Land is acquired for a purchase price of $60,000. The purchaser paid $3,000 to remove an old building, a real estate broker's fee of $1,200 to buy the land, $2,500 to install a parking lot, and $500 to an architect to design a new building to be construct
- Samtech Manufacturing purchased land building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Tit
- In the current year, E Inc. had the following legal expenses: $2,000 for letters to collect overdue accounts receivable, $5,000 for representation to the municipal government, and $6,000 to examine the contract to purchase land for a new warehouse buildin
- Intermountain Delivery Company acquired an adjacent lot to construct a new warehouse, paying $100,000 and giving a short-term note for $700,000. Legal fees paid were $5,000, delinquent taxes assumed were $18,500, and fees paid to remove an old building fr
- Intermountain Delivery Company acquired an adjacent lot to construct a new warehouse, paying $100,000 and giving a short-term note for $700,000. Legal fees paid were $5,000, delinquent taxes assumed were $18,500, and fees paid to remove an old building f
- Terms of a lease agreement and related facts were: a. Costs of negotiating and consummating the completed lease transaction incurred by the lessor were $6,203. b. The retail cash selling price of the
- Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the l
- Gagner Clinic purchases land for $180,000 cash. The clinic assumes $1,800 in property taxes due on the land. The title and attorney fees totaled $1,200. The clinic has the land graded for $2,500. What amount does Gagner Clinic record as the cost for the l
- ASD Company purchased land as a factory site. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed below: - Land p
- Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the
- Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $33,000 and giving a short-term note for $328,000. Legal fees paid were $2,235, delinquent taxes assumed were $9,800, and fees paid to remove an old building from the
- Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 and giving a short-term note for $319,000. Legal fees paid were $2,070, delinquent taxes assumed were $10,200, and fees paid to remove an old building from the
- Acer inc plans to develop a shopping center. The following amounts were spent: acquisition of land $24000 surveys & legal fees: 1500, land clearing:$500, fencing $6000 install lighting: $1360 . What amount should be recorded as the cost of the lan
- Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building:
- Samtech Manufacturing purchased land and building for $5 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: T
- Purchase price of land purchased for a new business site. Is classified as: A. Buildings B. Machinery and Equipment C. Land D. Land Improvements
- Carve Inc. purchased a building and the land on which the building is situated for a total cost of $700,000 cash. The land was appraised at $320,000 and the building at $480,000. A. What is the accounting term for this type of acquisition? B. Determine th
- A firm purchased land for $150,000. Broker commissions of $3,000 and other closing costs of $1,800 were paid in acquiring the land. An old building that was on the land was demolished. The demolition costs were $4,500, but some of the demolished building
- Freight costs paid on the purchase of new equipment. Are classified as: A. Buildings B. Machinery and Equipment C. Land D. Land Improvements
- In the current year, C Inc. had the following expenses: $4,000 legal fee to register a mortgage on its office building, $7,000 for landscaping the land around the office building, and $800 interest paid to CRA for late tax installments. The legal fee and
- Samtech Manufacturing purchased land and bullding for $4 mlllion. In addition to the purchase price, Samtech made the following expenditures In connection with the purchase of the land and building:
- Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building:
- Drive and Fly, near an airport, incurred the following cost to acquire land, make land improvements, and construct and furnish a small building: a. Purchase price of 3 acres of land 80,000 b. Delinquent real estate taxes on the land to be paid by Drive an
- Acer, Inc. plans to develop a shopping center. In the first quarter, the following amounts were spent: Acquisition of land $16,000 Surveys and legal fees $1,200 Land clearing $1,100 Fencing $7,000 Install lighting and signage $1,760 What amount should be
- Bridge City Consulting bought a building and the land on which it is located for $140,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. a. Prepare
- Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. Prepare the
- ABC Company purchased a piece of land with a preexisting building on it for a price of $250,000. In order to prepare the land for future construction, the old building was demolished at a cost of $15,000. The amount of scrap material that resulted from th
- Acer Investments plans to develop a shopping center. In the first quarter they spent the following amounts: Acquisition of land $15,000 Surveys and legal fees $600 Land clearing $200 Fencing $1,000 Install lighting and signage $860 What amount should be r
- Whyte Clinic purchases land for $290,000 cash. The clinic assumes $4,000 in property taxes due on the land. The title and attorney fees totaled $3,200. The clinic had the land graded for $4,800. What amount does Whyte Clinic record as the cost for the lan
Explore our homework questions and answers library
Browse
by subject