A Company Purchased Land on Which to Construct a New

question 125

Essay

A company purchased land on which to construct a new building for a cost of $350,000.Additional costs incurred were:
Real estate broker's commissions………………………….$24,500
Legal fees incurred in purchase of the real estate………… 1,500
Landscaping………………………………………………..8,000
Cost to remove old house located on land…………… 3,000
Proceeds from selling materials salvaged from old house 1,000
What total dollar amount should be charged to Land and what amount should be charged to Building or other accounts?

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Definitions:

Coronal

Referring to a plane or section that divides the body into front and back portions.

Molecule

The smallest physical unit of an element or compound, consisting of one or more atoms bonded together.

Mitochondrion

A cellular organelle involved in energy production, critical for ATP synthesis through the process of oxidative phosphorylation.

Microbiome

The collection of microorganisms living in a particular environment, such as the human body, influencing health and disease.