Falcon Company Acquired an Adjacent Lot to Construct a New

question 33

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 a new warehouse. Determine the cost of the land to be reported on the balance sheet and show your work.

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Definitions:

Adventitious Breath Sounds

Abnormal sounds heard during lung auscultation that indicate disruptions in the air flow, often signaling respiratory problems.

Compromised Blood Flow

A condition where the circulation of blood through the body's vascular system is impeded, potentially leading to various health issues.

Edema

A medical condition characterized by an excess of watery fluid collecting in the cavities or tissues of the body, leading to swelling.

Shearing Forces

Forces that cause parts of a material to slide past each other in opposite directions, often leading to strain or injury in tissues.