COST OF FIXED ASSETS
Mooney Sounds, a local stereo retailer, needed a new store because it had outgrown the leased space it had used for several years. Mooney acquired and remodeled a former grocery store. As a part of the acquisition, Mooney incurred the following costs:
|
Cost of grocery store
|
$350,000
|
|
Cost of land (on which the grocery store is located)
|
65,000
|
|
New roof for building
|
74,000
|
|
Lumber used for remodeling
|
23,200
|
|
Paint
|
515
|
|
Wire and electrical supplies
|
4,290
|
|
New doors
|
6,400
|
|
New windows
|
3,850
|
|
Wages paid to workers for remodeling
|
12,500
|
|
Additional inventory purchased for grand opening sale
|
45,300
|
Required:
Determine the cost of the land and the building.