Valix Finacc vol 1 Problem 16-10

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 16 Problem 16-10

Purchase price                        2,000,000           Contract price                 6,000,000

Commission                                          100,000           Plans, specification

Legal fees                                                50,000               and blueprint                 100,000

Title guarantee                                        10,000          Architectural fee                  250,000

Cost of razing old building                    75,000           Cost of new building        6,350,000

Salvage value of materials               (      5,000)            

Cost of land                                       2,230,000