Bob the Builder purchased land as a factory site for $282,000. He paid $10,000 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1,350. Legal fees of $870 were paid for title investigation and making the purchase. Architect's fees were $10,300. Liability insurance during construction cost $650. Excavation costs were $2,610. A contractor was paid $600,000 to construct the new building. An assessment made by the city for pavement was $1,600. Interest costs during construction were $42,500. Assume that Bob prepares his financial statements based on IFRS. Determine the cost of land to be capitalized.
|Cost of Land|
|Amount in $|
|Add:Paid to Tear down||10,000|
|Add: Legal fee||870|
|Add: Assessment by city for pavement||1,600|
|Cost of land to be capitalized.||293,120|
Get Answers For Free
Most questions answered within 1 hours.