Question 1 9 marks Maldive Company completes construction of a building. The following independent items...
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Accounting
Question 1 9 marks
Maldive Company completes construction of a building. The following independent items are the costs and other aspects relevant to the purchase of the lot and construction of the building:
Cash payments to contractor $100,000
Cash payment for building permit ... 3,000
Cost of land . 50,000
Cost to raze old building on land (gross) 20,000
Proceeds from old building salvage . 5,000
Utility bill for electricity used during construction 2,000
Advance payments for purchase of materials for
anticipated ordinary repairs 1,000
Capitalized interest on construction . 3,000
Required:
Compute the final recorded cost of the land.
Compute the final recorded cost of the building.
Instructions
Show all workings.
Round all calculations to the nearest dollar.
Assume a December 31 fiscal year end unless specifically stated otherwise
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