Costs associated with land and construction of new building
Not what you're looking for?
Could use some help on the following accounting questions:
Poin Company recently incurred the following costs:
1. Purchase price of land and dilapidated building 280,000
2. Real estate broker's commission 14,000
3. Net demolition costs of dilapidated building 42,000
4. Excavation costs for new building 44,000
5. Architect's fees and building permits 35,000
6. Costs associated with new building construction 930,000
7. Costs associated with new furniture and equipment 250,000
8. Actual interest costs during building construction 135,000
9. Actual interest cost after completion of bldg const120,000
10.Costs of walks, driveways, and parking lot 55,000
1. The building should be recorded on Poin's books at
a. $1,144,000
b. $1.319,000
c. $ 930,000
d. $1,264,000
2. Land should be recorded on Poin's books at
a. $280,000
b. $336,000
c. $322,000
d. $380,000
Purchase this Solution
Solution Summary
The solution explains the cost basis for land and building.
Solution Preview
1. Building should be recorded at all the costs incurred in constructing the building.
(4) Excavation costs for new building 44,000
(5) Architect's fees and building permits 35,000
(6) ...
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations