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ashanty45
ashanty45
18.09.2019 • 
Business

E10-5 (treatment of various costs) ben sisko supply company, anewly formed corporation, incurredthe following expenditures related to land, to buildings, and tomachinery and equipment.abstract company’s fee for title search $ 520architect’s fees 3,170cash paid for land and dilapidated building thereon 87,000removal of old building $20,000less: salvage 5,500 14,500interest on short-term loans during construction 7,400excavation before construction for basement 19,000machinery purchased (subject to 2% cash discount, which was nottaken) 55,000freight on machinery purchased 1,340storage charges on machinery, necessitated by noncompletion ofbuilding when machinery was delivered 2,180new building constructed (building construction took 6 monthsfromdate of purchase of land and old building) 485,000assessment by city for drainage project 1,600hauling charges for delivery of machinery from storage to newbuilding 620installation of machinery 2,000trees, shrubs, and other landscaping after completion ofbuilding(permanent in nature) 5,400instructionsdetermine the amounts that should be debited to land, to buildings,and to machinery and equipment.assume the benefits of capitalizing interest during constructionexceed the cost of implementation. indicate how any costs notdebited to these accounts should be recorded.

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