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:

Spanish-American War

A conflict in 1898 between Spain and the United States, resulting in U.S. acquisition of territories like Puerto Rico, Guam, and the Philippines.

Sensational Riot

A violent public disorder that is dramatically exaggerated or highlighted in media or popular discussion.

Atlanta

The capital city of Georgia, known for its rich history in the civil rights movement and as a major cultural and economic center in the United States.

Prominent Black Citizens

Leading or well-known African American individuals who have made significant contributions to society.