133.What is the cost of the land, based upon the following data?
Land purchase price
|
$178,000
|
Broker's commission
|
15,000
|
Payment for the demolition
|
|
and removal of existing building
|
5,000
|
Cash received from the sale of materials
|
|
salvaged from the demolished building
|
2,000
|
134.Falcon Company acquired an adjacent lot to construct a new warehouse, paying $40,000 and giving a short-termnote for $410,000. Legal fees paid were $13,275, delinquent taxes assessed were $14,500, and fees paid to removean old building from the land were $15,800. Materials salvaged from the demolition of the building were sold for$6,800. A contractor was paid $890,000 to construct the new warehouse. Determine the cost of the land to bereported on the balance sheet and show your work.
135.Identify each of the following expenditures as chargeable to (a) Land, (b) Land Improvements, (c) Buildings, (d)Machinery and Equipment, or (e) other account.
(1)Cost of paving parking area for employees and customers
(2)Insurance during construction of building
(3)Interest incurred on loan during construction of building
(4)Fee paid for installation of equipment
(5)Special foundation for new equipment acquired
(6)Insurance on new equipment while in transit
(7)Freight charges on new equipment
(8)Cost of repairing vandalism damage to equipment during installation
(9)Sales tax on new equipment
(10)Cost incurred in repairing damage resulting from installation of new equipment
(11)Cost of land fill for building site
(12)Cost of lubricating oil purchased for periodic oil changes for equipment
(13)Parking lot lighting
(14)Installing a fence around the parking lot
(15)Repainting the trim on a building
(16)Special assessment paid to city for extension of water main to property
(17)Cost of razing and removing the old building on property acquired for a building site
(18)Delinquent real estate taxes assumed by purchaser on property acquired for a building site
(19)Attorney's fee for title search
(20)Architect's fee for building plans and supervision of construction
136.A number of major structural repairs completed at the beginning of the current fiscal year at a cost of $1,000,000are expected to extend the life of a building 10 years beyond the original estimate. The original cost of the buildingwas $6,552,000, and it has been depreciated by the straight-line method for 25 years. Estimated residual value isnegligible and has been ignored. The related accumulated depreciation account after the depreciation adjustment atthe end of the preceding fiscal year is $4,550,000.
(a)What has the amount of annual depreciation been in past years?
(b)What was the original life estimate of the building?
(c)To what account should the $1,000,000 be debited?
(d)What is the book value of the building after the extraordinary repairs have been made?
(e)What is the expected remaining life of the building after the extraordinary repairs have beenmade?
(f)What is the amount of straight-line depreciation for the current year, assuming that therepairs were completed at the very beginning of the current year? Round to the nearestdollar.