What is the capitalized cost of land


Measure the cost of plant assets

Response to the following problem:

Atlanta Self Storage purchased land, paying $145,000 cash as a down payment and signing a $190,000 note payable for the balance. Atlanta also had to pay delinquent property tax of $5,000, title insurance costing $3,000, and $8,000 to level the land and remove an unwanted building. The company paid $58,000 to add soil for the foundation and then constructed an office building at a cost of $860,000. It also paid $39,000 for a fence around the property, $16,000 for the company sign near the property entrance, and $4,000 for lighting of the grounds. What is the capitalized cost of each of Atlanta's land, land improvements, and building?

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Accounting Basics: What is the capitalized cost of land
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