Falcon Company Acquired an Adjacent Lot to Construct a New

question 133

Essay

Falcon Company acquired an adjacent lot to construct a new warehouse, paying $40,000 and giving a short-term note for $410,000. Legal fees paid were $13,275, delinquent taxes assessed were $14,500, and fees paid to remove an old building from the land were $15,800. Materials salvaged from the demolition of the building were sold for $6,800. A contractor was paid $890,000 to construct the new warehouse. Determine the cost of the land to be reported on the balance sheet and show your work.

---

Definitions:

Health Care Costs

The expenses associated with medical care, including hospital stays, physician services, prescription drugs, and health procedures.

Aging Population

A demographic trend characterized by an increase in the median age of a population due to declining fertility rates and rising life expectancy.

Workers' Compensation Fund

A pool of funds used to provide financial assistance and medical care to employees who are injured or become ill as a direct result of their job.

Contributions

imply donations or payments made towards a particular cause, group, or effort, or the act of giving towards something.