Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.
|
Abstract company's fee for title search
|
608
|
|
Architect's fees
|
3,709
|
|
Cash paid for land and dilapidated building thereon
|
107,640
|
|
Removal of old building
|
23,400
|
|
Less: Salvage
|
6,435
|
16,965
|
|
Interest on short-term loans during construction
|
8,658
|
|
|
Excavation before construction for basement
|
22,230
|
|
|
Machinery purchased (subject to 2% cash discount, which was not taken
|
76,050
|
|
|
Freight on machinery purchased
|
1,568
|
|
|
Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered
|
2,551
|
|
|
New building constructed (building construction took 6 months from date of purchase of land and old building)
|
567,450
|
|
|
Assessment by city for drainage project
|
1,872
|
|
|
Hauling charges for delivery of machinery from storage to new building
|
725
|
|
|
Installation of machinery
|
2,340
|
|
|
Trees, shrubs, and other landscaping after completion of building (permanent in nature)
|
6,318
|
|
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation.