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HW #7 Solution - Homework#7 Best of 5 out of 7 Name#1-2...

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Homework #7 - Best of 5 out of 7!! Name:________________________ #1-2 : Wilson Co. purchased land as a factory site for $800,000. Wilson paid $80,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,500,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. 1. The cost of the land that should be recorded by Wilson Co. is a. $880,480. b. $886,880. c. $889,880. d. $896,280. 2. The cost of the building that should be recorded by Wilson Co. is 3. Messersmith Company is constructing a building. Construction began in 2012 and the building was completed 12/31/12. Messersmith made payments to the construction company of $1,500,000 on 7/1, $3,150,000 on 9/1, and $3,000,000 on 12/31. Average accumulated expenditures were #4-6: On March 1, 2012, Newton Company purchased land for an office site by paying $900,000 cash. Newton began construction on the office building on March 1. The following
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