Valix Finacc vol 1 Problem 16-6

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 16 Problem 16-6

Purchase price                                                                                             3,000,000

Title clearance fee                                                                                                       50,000

Cost of razing old building                                                                                        100,000

Scrap value of old building                                                                                   (     10,000)

Total cost of land                                                                                                    3,140,000

Construction cost of new building                                                                         8,000,000