Question

(Acquisition Costs of Realty) Martin Buber Co. purchased land as a factory sitefor
$400,000	. The process oftearing down two old buildings on the site and constructingthe
factory required 6months. The company paid				$42,000	to raze the oldbuildings and
sold salvagedlumber and brick for			$6,300	. Legal feesof		$1,850
were paid fortitle investigation and drawing the purchase contract. Martin Buberpaid						$2,200
to an engineeringfirm for a land survey, and			$68,000	for drawing thefactory plans. The land
survey had to bemade before definitive plans could be drawn. Title insurance on theproperty cost
$1,500	, and a liabilityinsurance premium paid during construction was					$900
The contractor?scharge for construction was			$2,740,000	. The company paidthe contractor in two
installments:	$1,200,000	at the end ofthree months and			$1,540,000	upon
completion.Interest costs of		$170,000	were incurred tofinance the construction.
Instructions: fill in all chartshown
Determine the cost of the land and the cost of the building as theyshould be recorded on the books of Martin Buber Co. Assume that theland survey was for the building.
			Land	Building
	Text Title		Amount
	Text Title		Amount
	Less: Salvage		Amount
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	Text Title			Amount
	Text Title		Amount
	Text Title			Amount
	Text Title			Amount
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			Formula	Formula