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. | More » share ront TMG 11 Suggested Sites HP. See What's Hot @web Sice Gallery Reynoldsa] On March 1, 2017, Crane Company acquired real estate, on which it planned to construct a smalil ffice building, by paying $81,000 n cash. An old warehouse on the pe demolished at a cost of $8,400; the salvaged materials were sold for $1,740. Additional expenditures before construction began land purchase, $4,600 real estate broker's fee, $8,740 architect's fee, and $14,200 to put in driveways and a parking lot. property was (a) Determine the amount to be reported as the cost of the land. Cost of land s Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 5 used sAVE FOR LATER If you this question correctly in your first

Explanation / Answer

a) All the expenses incurred to acquire the assets are capitalised in the cost of the asset so the cost of the land is 81000+8400-1740+1240+4600+8740+14200=116440

b) depreciable value= (68880-5040)=63840

dep 2017=63840/6=10640*3/12=2660

dep 2018=10640 as calulated above

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