Falcon Company Acquired an Adjacent Lot to Construct a New

question 79

Essay

Falcon Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $370,000. Legal fees paid were $11,425, delinquent taxes assessed were $12,000, and fees paid to remove an old building from the land were $18,500. Materials salvaged from the demolition of the building were sold for $4,500. A contractor was paid $910,000 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:

Margin Of Safety

The extent to which a product or activity is considered safe, or the difference between a product's normal operating condition and its failure point.

Endocrine Systems

A chemical messaging system in the body comprised of glands that release hormones directly into the bloodstream, influencing numerous physiological processes.

Immune

Having resistance to a specific infectious disease, often through vaccination or previous infection, leading to specific immunity.

Nervous

Feeling of anxiety, apprehension, or unease, often related to fear of a specific situation or outcome.