Acquisition Costs

(Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are shown as negative numbers.

Money borrowed to pay building contractor (signed a note)        ($275,000)
Payment for construction from note proceeds  275,000
Cost of land fill and clearing       10,000
Delinquent real estate taxes on property assumed by purchaser              7,000
Premium on 6-month insurance policy during construction         6,000
Refund of 1-month insurance premium because construction completed early (1,000)
Architect’s fee on building          25,000
Cost of real estate purchased as a plant site (land $200,000 and building $50,000)            250,000
Commission fee paid to real estate agency         9,000
Installation of fences around property  4,000
Cost of razing and removing building     11,000
Proceeds from salvage of demolished building (5,000)
Interest paid during construction on money borrowed for construction                13,000
Cost of parking lots and driveways          19,000
Cost of trees and shrubbery planted (permanent in nature)       14,000
Excavation costs for new building            3,000
Identify each item by letter and list the items in columnar form, using the headings shown below. (All receipt amounts should be reported with either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Note: If answer is zero, please enter 0, do not leave any fields blank.)