McGraw Hill Higher EducatC Chegg Study Guided SolurtWeek 1Pr

McGraw Hill Higher EducatC Chegg Study |Guided SolurtWeek 1:Practice Proble XMHE eBook-Price, College+ 0 1?newconnectm k 1 Practice Problems On January 6, 2019, Baxter Company purchased a site for a new manufacturing plant for $2.900,000. At a cost of $18.500, it razed an existing facility (fair market value $250,000) and received $12.000 from its salvage. The company also paid $6,900 in attorney fees, $2,100 in inspection fees, and $1,400 for a permit to raze the fecility. After the facility was torn down, the foilowing costs were incurred $55,400 for fill dirt for the site, $37.000 for leveling the site. $130,000 for paving sidewalks and curbs, and $4,700.000 for building costs of the new facility. The parking area was paved at a cost of $130,700 Required 1-3. Compute the capitalized cost of the manufacturing plant, land and land improvements ingLand g plant Demoliton of buldng Peterences and paving of parking lot Type here to search

Solution

Manufacturing Plant Land Land Improvement Construction of Manufacturing Plant $29,00,000.00 Purchase of Land $18,500.00 Demlition of building Less: Salvage -$12,000.00 Attorney Fees $6,900.00 Inspection Fees $2,100.00 Permit to Raze facility $1,400.00 Purchase of fill dirt $55,400.00 Levelling of Site $37,000.00 Paving of Sidewalk and curbs $1,30,000.00 Construction and paving of Parking Lot $1,30,700.00 Total Capitallized Cost $0.00 $30,09,300.00 $2,60,700.00