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.

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Definitions:

Wisdom Teeth

The last set of molars that most people get in their late teens or early twenties, often removed if misaligned or causing discomfort.

Chewing

The act of breaking down food with the teeth to aid in the digestive process.

Trigeminal Nerve

The fifth cranial nerve responsible for sensory data from the face and head, and motor functions such as biting and chewing.

Oculomotor Nerve

The third cranial nerve, responsible for controlling most of the eye's movements and pupil constriction.