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28 Sep 2019
5. On December 1, 2014, Hogan Co. purchased a tract of land as a factory site for $750,000. The old
building on the property was demolished, and salvaged materials resulting from demolition were sold.
Additional costs incurred and salvage proceeds realized during December 2014 were as follows:
Cost to demolish old building $70,000
Legal fees for purchase contract and to record ownership 10,000
Title guarantee insurance 16,000
Proceeds from sale of salvaged materials 8,000
In Hogan 's December 31, 2014 balance sheet, what amount should be reported as land?
A. $776,000 B. $812,000 C. $838,000 D. $846,000
5. On December 1, 2014, Hogan Co. purchased a tract of land as a factory site for $750,000. The old
building on the property was demolished, and salvaged materials resulting from demolition were sold.
Additional costs incurred and salvage proceeds realized during December 2014 were as follows:
| Cost to demolish old building $70,000 |
| Legal fees for purchase contract and to record ownership 10,000 |
| Title guarantee insurance 16,000 |
| Proceeds from sale of salvaged materials 8,000 |
In Hogan 's December 31, 2014 balance sheet, what amount should be reported as land?
A. $776,000 B. $812,000 C. $838,000 D. $846,000
Elin HesselLv2
30 Sep 2019