Robert Sporting Goods Company has been experiencing growth in the demand for its products, post COVID-19. To be able to meet quantity commitments, the company has to obtain additional manufacturing capacity. It purchased land for a new factory site for $600 000 on January 1, 2021 and paid $60 000 to tear down two buildings that were on the land. Salvage from the demolition was sold for $5 400.
Legal fees of $3 480 were paid for title investigation and making the purchase along with the Architect's fees of $31 200. Title insurance cost of $2 400, and liability insurance during construction cost of $2 600 were incurred.
Excavation works amounted $10,440. The contractor, BDO Construction Ltd was paid
$2 200 000. An assessment made by the Government Housing and Infrastructure Authorities (GHIA) for pavements was valued at $6 400.
Interest costs incurred during construction amounted to $170 000.
Required:
What is the cost of the land that should be capitalized on the books by Robert Sporting Goods Company? Complete the schedule below. If a line item does not apply place zero in the field in the number column. Do not leave any number fields blank.
Land:
$
Purchase value
Demolition cost
Salvage value
Legal fees for title investigation
Architect fees
Title insurance cost
Liability insurance cost
Excavation cost
Contractor fees
Assessment for pavement cost
Interest cost
Capitalized cost of Land
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