Purchase Solution

Expenditure constructing building: capitalize land building

Not what you're looking for?

Ask Custom Question

A company made the following expenditures in connection with the construction of its new building:
[See the attached file]

A company made the following expenditures in connection with the construction of its new building:

architect $12,000.00
land with run down building $300,000.00
removal of old building $18,000.00
salvage from sale of old building materials $(4,000.00)
survey $1,500.00
legal fees title $3,000.00
excavation of basement $25,000.00
machinery $100,000.00
storage, machinery $900.00
freight, machinery $1,600.00
hauling, machinery $300.00
construction costs, building $1,000,000.00
landscaping $20,000.00
installation, machinery $2,500.00

Prepare a schedule showing the amounts to be recorded as Land, Buildings, and Machinery.

Attachments
Purchase this Solution

Solution Summary

Your tutorial plus instructional remarks are in Excel to guide you.

Solution Preview

Posting:

A company made the following expenditures in connection with the construction of its new building:

architect $12,000.00
land with run down building $300,000.00
removal of ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

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.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.