Math Problems Able Corporation, Ready Construction - 275 Words

Math Problems: Able Corporation as a Factory; Ready Construction (Coursework Sample) Content: Math ProblemsNameInstitutionAble Corporation purchased land as a factory site and contracted with Ready Construction to construct a factory. Able made the following expenditures related to the acquisition of the land, building, and machinery to equip the factory:Â Purchase price of the landÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂ 1,400,000ÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂ Demolition and removal of old building60,000Â Clearing and grading the land before construction145,000Â Various closing costs in connection with acquiring the land32,000Â Architect's fee for the plans for the new building70,000Â Payments to LuLu for building construction3,350,000 Â Machinery purchased855,000Â Freight charges on machinery31,000Â Trees, plants, and other landscaping47,000Â Installation of a sprinkler system for the landscaping3,000Â Cost to build special platforms and install wiring for theÂÂ machinery11,000Â Cost of trial runs to ensure proper installation of the machinery6,000Â Fire and theft insurance on the factory for the first year of use24,000ÂIn addition to the above expenditures, Able purchased four forklifts from Fleet Street. In payment, Able paid $18,000 cash and signed an interest-bearing note requiring the payment of $50,000 at the end of one year. An interest rate of 8% properly reflects the time value of money for this type of loan.ÂRequired:Determine the acquisition costs of each of the assets Able acquired in the above transactions for land, building, machinery, land improvements...