Previously asked, it yet land sb is 104,100. Land improvement s/b 82,500. Building s/b 483,500. Depreciation expenses were off as well.
Natural Resources and Intangibles
Problems Group B
Learning Objectives 1.2
Improvements, and construct and furnish a small building:
a. Purchase price of three acres of land: $86,000
b. Additional dirt and earthmoving: $6,300
c. Title insurance on the land acquisition: $8,400
d. Fence around the boundary of the property: $3,400
e. Building permit for the building: $9,600
f. Architect's fee for the design of the building: $6,000
g. Signs near the front of the property: $20,100
h. Materials used to construct the building: $9,000
i. Labor to construct the building: $217,000
j. Interest cost on construction loan for the building: $172,000
k. Parking lots on the property: $9,500
l. Lights for the parking lots: $29,400
m. Salary of construction supervisor (80% to building:20% to parking lot and concrete walks): $11,600
n. Furniture: $80,000
o. Transportation of furniture from seller to the building: $11,700
p. Additional fencing: $1,900
Safe Parking depreciates land improvements over 15 years, buildings over 40 years, and furniture over 10 years, all on a straight-line basis with zero residual value.
Requirements:
1. Set up columns for Land, Land Improvements, Building, and Furniture. Show how to cost each asset.
2. Round to the nearest dollar.