Ask Question
26 February, 21:43

Belvidere Furniture purchasedâ land, paying $ 60,000 cash and signing a $ 280,000 note payable. Inâ addition, Belvidere paid delinquent property tax of $ 3,500â, title insurance costing $ 3,000â, and $ 7,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $450,000. It also paid $ 53,000 for a fence around theâ property, $ 19,000 for a sign near theâ entrance, and $ 9,000 for special lighting of the grounds.

Requirements

1. Determine the cost of the land, land improvements, and building.

2. Which of these assets will Lawson depreciate?

+1
Answers (1)
  1. 27 February, 00:51
    0
    1. $353,500, $81,000 and $450,000

    Explanation:

    The computation is shown below:

    1. For land = Cash paid + note payable + delinquent property tax + title insurance + removing cost

    = $60,000 + $280,000 + $3,500 + $3,000 + $7,000

    = $353,500

    For land improvements = Fencing cost + signing cost + special lighting cost

    = $53,000 + $19,000 + $9,000

    = $81,000

    And the cost of the building is $450,000

    2. The building and land improvement is depreciation if land improvement have a useful life

    The land should not be depreciated because of unlimited life.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Belvidere Furniture purchasedâ land, paying $ 60,000 cash and signing a $ 280,000 note payable. Inâ addition, Belvidere paid delinquent ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers