A Company Purchased Land on Which to Construct a New

question 22

Essay

A company purchased land on which to construct a new building for a cost of $250,000.Additional costs incurred were:
$\begin{array}{|l|r|}\hline\text { Real estate broker's commissions } & \$ 15,000 \\\hline \text { Legal fees incurred in purchase of the real estate } & 2,500 \\\hline \text { Landscaping } & 10,000 \\\hline \text { Expenses to remove old house located on land } & 3,000 \\\hline \text { Proceeds from selling materials salvaged from old house } & 1,000\\\hline\end{array}$
What total dollar amount should be charged to land and what amount should be charged to the new building?

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Definitions:

Magical Thinking

The belief that one’s thoughts, words, or actions can influence the course of events in the material world in a way that defies the laws of physics or logic.

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically elaborated into an organized system.

Avoidant Personality Disorder

A mental health condition marked by feelings of extreme social inhibition, inadequacy, and sensitivity to negative evaluation.

Social Situations

Scenarios involving interaction with others in various settings, which can influence behaviors, emotions, and perceptions.