Nyguen Company bought real estate, on which there was an old office building, for $900,000. They paid $90,000 in cash as a down payment and signed a 6% mortgage for the remainder. They immediately had the old building razed at a net cost of $30,000, the salvaged materials were sold for $4,200. Attorneys were paid $7,000 in connection with the land purchase and an additional $3,000 in connection with permits and zoning variances necessary for Nyguen's new office building. $25,000 was paid for excavation for the basement of the new building. $2,100,000 was paid for construction of the new building, and $95,000 was paid for a parking lot and necessary walkways and driveways.
The new office building should be recorded at:
Land should be recorded at a cost of:
Recently Asked Questions
- Seven months ago , you purchased 600 shares of RL , Inc . stock at a price of $ 47.60 a share . You have received dividends totaling $ 1.20 a share . Today ,
- The excess of sales price of treasury stock over its cost should be credited to :
- This classification of excise tax can capture increases in the volume of production .