MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSON : ·BACK NEX CES Exercise 10-2 e

Question

MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSON : ·BACK NEX CES Exercise 10-2 er Martin Buber Co. purchased land as a factory site for $608,800. The process of tearing down two old buildings on the The company paid $63,924 to raze the old buidings and sold salvaged lumber and brick for $9,589. Legal fees of site and constructing the factory required 6 months. $2,816 were paid for title investigation and drawing the purchase contract. Martin Buber paid $3,348 to engineering firm for a land survey, and $103,496 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $2,283, and a liability insurance premium paid during construction was $1,370. The contractor's charge for construction was $4,170,280. The company paid the contractor in two installments: $1,826,400 at the end of 3 months and $2,343,880 upon completion. Interest costs of $258,740 were incurred to finance the construction Determine the cost of the land and the cost of the building as they should be recorded on the books of Martin Buberk Co. Assume that the land survey was for the building. Cost of the Land Cost of the Building Click if you would like to Show Work for this question: Oren ShomilWork Study s LINK TO TEXT VIDEO: SIMILAR PROBLEM

Explanation / Answer

Survey

Plans

$3,348

$103,496

Land Building Land 608,800 Razing costs $63,924 Less:salvage (9,589) Legal fees $2,816

Survey

Plans

$3,348

$103,496

Title insurance $2,283 Liability insurance $1,370 Construction $4,170,280 Interest $258,740 Total $668,234 $4,537,234

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