Try another version of this question Rossy Investigations purchased land, paying $90,000 cash plus a $260,000 note payable.
In Addition, Rossy Investigations paid delinquent property tax of $2,000, title insurance costing $1,000, and $2,000 to level the land and remove an unwanted building.
The company then constructed an office building at a cost of $460,000. It also paid $55,000 for a fence around the property, $19,000 for a sign near the entrance, and $6,000 for special lighting on the grounds.
Determine the cost of the land, land improvements, and building. Account Land Land Improvements Building Purchase price Note payable Property tax Title insurance Remove building Construct building Fence Sign Lighting Totals Account Land Land Improvements Building Purchase price 90,000 Note payable 260,000 Property tax 2,000 Title insurance 1,000 Remove building 2,000 Construct building 460,000 Fence 55,000 Sign 19,000 Lighting 6,000 Totals 355,000 80,000 460,000