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:

Financial Health

The condition of an organization's or individual's finances, reflecting their ability to meet short-term obligations and long-term financial goals.

Interview Process

The series of stages or steps taken by an organization to evaluate candidates and select the most suitable one for a job position.

Salary Range

The spectrum of potential earnings for a specific position, defined by a minimum and maximum possible salary.

Follow-Up Communication

The process of making further contact for clarification, feedback, or progress updates after an initial interaction or communication.