Thompson Glacier Limited Purchased a Tract of Land and Contracted

question 126

Essay

Thompson Glacier Limited purchased a tract of land and contracted with a commercial developer to build an office building.Thompson Glacier Limited also engaged other contractors for fencing,paving,lighting,and landscaping.
Based on the following data,determine the cost of the land,the building,and the land improvements.
∙ Purchased land for $100,000.
∙ Paid $2,000 for seller's back property taxes.
∙ Paid a builder $225,000 to design and build the office building.
∙ Paid an excavation company $6,000 to grade and clear the land to make it suitable for building purposes.
∙ Paid a landscaping company $6,500 for trees and shrubs.
∙ Paid a lighting contractor $10,000 for outside lighting around the parking area and sidewalks.
∙ Paid $15,000 to have the parking lot paved.
∙ Paid a fence builder $12,000 to construct a security fence around the property.

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Definitions:

Transportation

The process or activity of moving goods and products from one location to another, a crucial component of the logistics and supply chain management.

Information

Data that has been processed, organized, or structured in a way that it becomes meaningful or useful to the recipient.

Seasonal Inventory

Goods held in stock that are influenced by seasonal demand, requiring businesses to adjust their inventory levels according to expected sales fluctuations throughout the year.

Demand

Refers to the market's desire for a product or service, quantified by the amount people are ready to buy at various prices.