PROBLEM 26-6 (IAA)

1 D. 1 080 000

Cash paid for land and dipalated building 1 000 000

Fee for title search 10 000
Survey before construction of new building 20 000
Assessmant by city for drainage project 5 000
Cost of grading, levelling and landfill 45 000
Total Cost of Land 1 080 000

2 A. 6 625 000

Cost of demolition of old building 50 000

Architect Fee 200 000
Payment for tenants for vacating old building 15 000
Building Permit for new construction 30 000
Excavation before new construction 100 000
 New building constructed 6 000 000
Driveways and walks 40 000
Temporary quarters for construction crew 80 000
Temporary building to house tools and materials 60 000
Cost of changes during construction 50 000
Total Cost of New Building 6 625 000

PROBLEM 26-7 (IAA)

1 C. 1 895 000

Land 1 800 000

Legal Fees, including fee for title 10 000
Payment of Land Mortage 50 000
Payment of deliquent property taxes assuumed 20 000
Grading and drainage on land site 15 000
Total Cost of Land 1 895 000

2 A. 8 555 000
 Payment to building contractor 8 000 000
Cost of razing the apartment building 30 000
Architect fee 200 000
Interest cost on specific borrowings 300 000
Premium of insurance on building 25 000
Total cost of new building 8 555 000

3 C. 100 000

Cost of paving driveways and parking lot 40 000

Cost of trees, shrubs, and other landscaping 55 000
Cost of installing lights in parking lot 5 000
Total Cost of Land Improvemet 100 000

PROBLEM 26-8 (IAA)

1 A. 1 310 000

Purchase of Land as Plant size 2 000 000

 Less: Fair value of office building (700 000)
Legal Cost of conveying land 10 000
Cost of Land 1 310 00

2 B. 900 000

Fair value of office building 700 000

Cost of remodelling office building 200 000
Cost of Office Building 900 000

3 B. 5 800 000

Materials and Supplies 3 000 000

Excavation 100 000
Labor on Construction 2 500 000
Less: Cash discounts on materials purchase (60 000)
Supervisiom insurance of workers 70 000
Compensation Insurance of workers 20 000
Other expenses 30 000
Plans and specification 140 000
Total Cost of Factory Building 5 800 000

PROBLEM 26 - 9 (AICPA
ADAPTED)
1 A. 6 250 000

Land (Beginning) 3 500 000

Land (Purchase Proce) 1 250 000
Issuance of Share capital 33% 4 500 000 1 500 000
Cost of land 6 250 000