60.1K

Verified Solution

Link Copied!

the options are; accumulated depreciation, buildings,depreciation expense, insurance expense,land,land and buildings, paid-in-capital, prepaid insurance, organizational expense, retained earnings, salaries and wages expense

Indigo Company was incorporated on January 2, 2018, but was unable to begin manufacturing activities until July 1, 2018, because new factory facilities were not completed until that date The Land and Buildings account reported the following items during 2018 January 31 February 28 May 1 May 1 June 1 June 1 June 1 June 30 July 1 December 31 Land and building Cost of removal of Partial payment of new construction Legal fees paid Second payment on new construction Insurance premium Special tax assessment General expenses Final payment on new construction Asset write-up $170,300 9,885 63,960 4,350 42,600 2,280 3,670 38,411 27,990 50,411 413,857 building (3,653 ) $410,204 December 31 December 31, 2018 Account balance The following additional information is to be considered 1. To acquire land and building, the company paid $90,300 cash and 800 shares of its 8% cumulative preferred stock, Depreciation-2018 at 1% par value $100 per share. Fair value of the stock is $117 per share 2. Cost of removal of old buildings amounted to $9,885, and the demolition company retained all materials of the building 3. Legal fees covered the following

Answer & Explanation Solved by verified expert

See Answer