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:

Dispersion

The degree to which a distribution is stretched or squeezed, often measured by statistics such as range, variance, or standard deviation.

Relative Measure

A statistical or analytical metric that is used to assess or compare entities with reference to another entity or a common benchmark.

Box-and-Whisker Plots

A graphical representation of data that displays the distribution, median, quartiles, and outliers of a dataset.

Key Statistics

Important or crucial numerical information that helps summarize, analyze, or interpret data or phenomena.