ACCT 305 Live Lecture Excel Week 1

ACCT 305 Live Lecture Excel Week 1 - ACQUISITION COST: LAND...

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FACTS GIVEN: Purchased land and warehouse for $600,000 Made following expenditures: Broker's commission  30,000  Title insurance  3,000  Misc closing costs  6,000  Warehouse was immediately demolished at a cost of $18,000 REQUIRED: Calculate cost of land and building Purchase price  600,000  Broker’s commission  30,000  Title insurance  3,000  Miscellaneous closing costs  6,000  Demolition of old building  18,000           Total cost  657,000  All of the expenditures, including the costs to demolish the old building,  are included in the initial cost of the land.
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LUMP SUM ACQUISITION FACTS GIVEN: Purchase Price  500,000  Appraisal Values: Land  300,000  Building 1  150,000  Building 2  175,000  Step 1 Calculate total appraised (fair) value Land  300,000  Building 1  150,000  Building 2  175,000  Total Fair Value  625,000  Step 2
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ACCT 305 Live Lecture Excel Week 1 - ACQUISITION COST: LAND...

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