On March 1, 2018, Beldon Corporation purchased land as a factory site for $69,00

Question

On March 1, 2018, Beldon Corporation purchased land as a factory site for $69,000. An old building on the property was demolished and construction began on a new building that was completed on December 15, 2018. Costs incurred during this period are listed below Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2018) Construction costs Interest on construction loan $ 8,500 21,000 6,500 3,900 590,000 9,500 Salvaged materials resulting from the demolition of the old building were sold for $2,900 Required Determine the amounts that Beldon should capitalize as the cost of the land and the new building Complete this question by entering your answers in the tabs below Cost of Land Cost of New Building Determine the amounts that Beldon should capitalize as the cost of the land. (Amounts to be deducted should be indicated with a minus sign.) Capitalized cost of land: Demolition of old building Architect's fees Legal fees for title investigation Construction costs Property taxes on land Total cost of land

Explanation / Answer

Cost of land Capitalized cost of land cost of purchase 69,000 Demolition of old building 8,500 legal fees 6,500 less:proceeds from salvaged materials -2,900 cost of land 81,100 cost of Building Architects fees 21,000 construction costs 590,000 interest on construction loan 9,500 cost of building 620,500 note: Property taxes are operating costs

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