Contract cost of new building 7000000 Land improvements 500000 Sidewalks and

Contract cost of new building 7000000 land

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Contract cost of new building 7,000,000 Land improvements 500,000 Sidewalks and parking lot 200,000 The depreciated value of the old building on the books of the company from which the land was purchased was P300,000. The old building was never used by Paula. What is the cost of the land and building as inventory ? a. 10,580,000 b. 9,880,000 c. 10,280,000 d. 10,430,000
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Page 3 of 4 Exercise #22 4.Razor Company, a newly formed corporation, incurred the following expenditures related to land and building: Cost of land, which includedan old apartment building appraised at P500,000 3,000,000 Fee for title search 100,000 Payment to tenants for vacating old building 500,000 Payment for delinquent property taxes assumed by the purchaser 200,000 Removal of apartment building 50,000 Salvaged materials retainedby the demolition company 10,000 Cost of grading, leveling and other landscaping 150,000 Architect fees on new building 200,000 Payment to building contractors 10,000,000 Interest cost on specific borrowing incurred during construction 500,000 Payment of medical bills of employees accidentally injured while inspecting building construction 180,000 Cost of paving driveway and parking lot 40,000 Fences surrounding the property 20,000 Cost of installing lights in the parking lot 50,000 Premium for insurance on the building during construction 250,000 Cost of open house party to celebrate opening of new building 60,000 1. What is the cost of the land? 2. What is the cost of the building? 5. Paula Company has decided to expand its operations and has purchased land with a dilapidated building in Quezon City for construction of a new manufacturing plant. The following costs were incurred in purchasing the property and constructing the building: Land purchase price 2,500,000 Payment of delinquent property taxes 100,000 Title search and insurance 50,000 City improvements for water and sewer 150,000 Building permit 30,000 Cost to destroy existing building (P10,000 worth of salvaged
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