Haresh gujariya Entity B purchased land to build a pharmacy. It incurred the following costs:Purchase price of landTear down existing building on landSale of salvage materials from tear downClear and fill the landConstruction costs for new pharmacyOutdoor lightingPaving parking lotLandscaping$34,000$15,000$5,000$6,500$500,000$15,000$25,000$30,000What is the amount that should be debited to the Land Improvements (not Land) account?$50,500$550,500$70,000$620,500

The cost of land improvements includes fencing, paving, parking areas and lighting.

Entity B purchased land to build a pharmacy. It incurred the following costs: Purchase price of land $34,000 Tear down existing building on land $15,000 Sale of salvage materials from tear down $5,000 Clear and fill the land $6,500 Construction costs for new pharmacy $500,000 $15,000 $25,000 $30,000 Outdoor lighting Paving parking lot Landscaping What is the amount that should be debited to the Land Improvements (not Land) account? $50,500 $550,500 $70,000 $620,500

Entity B purchased land to build a pharmacy. It incurred the following costs: Purchase price of land $34,000 Tear down existing building on land $15,000 Sale of salvage materials from tear down $5,000 Clear and fill the land $6,500 Construction costs for new pharmacy $500,000 $15,000 $25,000 $30,000 Outdoor lighting Paving parking lot Landscaping What is the amount that should be debited to the Land Improvements (not Land) account? $50,500 $550,500 $70,000 $620,500

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...

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