contestada

The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows: Demolition of old building $ 9,000
Sale of salvaged materials (1,100)
Architect fees (for new building) 20,000 Legal fees (for title investigation of land) 3,000
Property taxes on the land for the first year) 1.000 Building construction costs 800
Interest costs related to the construction 300 Required: Determine the amounts that the company should record in the Land and the Building accounts. (Amounts to be deducted should be indicated by a minus sign.) Land Building Totals

Respuesta :

The amount recorded in the land account is $73,000 and building account is $857,900.

A land account is a non-current asset account presented in the balance sheet. A land account is considered as part of the tangible property, plant, and equipment. A building account is an account that contains the carrying amount of buildings owned by a business.

The amounts that the company should record in the land account are purchase price and legal fees for the title investigation of land. Hence, the total amount recorded is $70,000 + $3,000 = $ 73,000.

The amounts that the company should record in the building account are demolition of old buildings, sale of salvaged materials, architect fees, building construction cost, and cost related to the construction. Hence, the total amount recorded is $9,000 + $(1100) + $20,000 + $800,000 + $30,000 = $857,900.

Note: The question is incomplete as two costs are incorrect. The correct amount is Building construction costs 800,000 and costs related to the construction 30,000.

Learn more about Land account:

https://brainly.com/question/26383713

#SPJ4

Otras preguntas