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Problem 9-1B

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CHAPTER 9 Property, plant, and Equipment and Intangibles ALTERNATE PROBLEMS des Prs of Problem 9-1B Real estate costs LO1 CHECK FIGURE: 2. Dr. Land $423,600 In 2020, DelCano Properties paid $540,000 for a tract of land on which two buildings were located. The plan company office and was appraised at a value of $189,108. A lighted parking lot near Building B had improve- to have a value of $317,034. The company incurred the following additional costs: was to demolish Building A and build a new factory (Building C) in its place. Building B was to be used as a ments valued at $50,058. Without considering the buildings or improvements, the tract of land was estimated o 11 Cost to demolish Bullding A. Cost to landscape new building site.......... Cost to construct new building (Building C)..... Cost of new land improvements (Land improvements C) $ 46,800 69,000 542,400 40,500 Required 1. Prepare a schedule having the following column headings: Land, Building B, Building C, Land Improve- ments B, and Land Improvements C. Allocate the costs incurred by the company to the appropriate columns and total each column. 2. Prepare a single journal entry dated June 1 to record all the incurred costs, assuming they were paid in cash on that date

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