From the given data, compute the proper balances for the Land, Building, and Lan
ID: 2452880 • Letter: F
Question
From the given data, compute the proper balances for the Land, Building, and Land Improvements accounts of Secrest Investment Company.
Acquisition Cost of Long-Lived Asset The following items represent expenditures (or receipts) related to the construction of a new home office for Secrest Investment Company Cost of land site, which included an abandoned railroad spur Legal fees, including title search, relating to land purchase Cost of surveying land to confirm boundaries Cost of removing railroad tracks Payment of delinquent property taxes assumed by the purchaser Proceeds from sale of timber from walnut trees cut down to prepare site for construction Proceeds from sale of salvaged railroad track Grading to prepare land site for construction Cost of basement excavation (contracted separately) Architect's fees on new building Payment to building contractor-original contract price Cost of changes during construction to make building more energy efficient Cost of replacing windows broken by vandals Cost of paving driveway and parking lot Out-of-court settlement for mud slide onto adjacent property Special assessment for paving city sidewalks (paid to city) Cost of brick and wrought iron fence installed across front of property $175,000 4,300 1,100 6,500 6,000 (18,000) (3,500) 4,000 3,700 128,000 3,200,000 91,000 2,400 17,000 10,000 22,000 16,500Explanation / Answer
Secrest Investment Company. Cost of Land Amount($) Cost of land site which included an abondoned railroad spur 1,75,000 Legal fees included title search related to land purchase 4,300 Cost of surveying land to confirm boundries 1,100 Cost of removing railroad track 6500 Payment of delinquent property taxes assumed by the purchaser 6000 Proceeds from sale of timber from walnut trees cut down to prepare site for construction -18000 Proceeds from sale of salvaged railroad tracks -3500 Grading to prepare land site for construction 4000 Balance 1,75,400 Cost of Building Amount($) Architects's fees on new building 1,28,000 Payment to building contractor 32,00,000 Cost of paving driveway & parking lot 17,000 Special adjustment for paying city cost of sidewalk(Paid to city) 22,000 Cost of bricks and iron fence instlled across front of property 16,500 Balance 33,83,500 Cost of Land Improvement Amount($) Cost of changes during construction to make energy efficient 91,000 Cost of replacing window broken by vandates 2,400 Balance 93,400
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