E10-1b (acquisition costs of realty) the following expenditures and

E10-1B (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 enclosed in parentheses.

(a) Money borrowed to pay building contractor (signed a note)                                    $(357,500)

(b) Payment for construction from note proceeds                                                             357,500

(c) Cost of land fill and clearing                                                                                            10,400

(d) Delinquent real estate taxes on property assumed by purchaser                                    9,100

(e) Premium on 6-month insurance policy during construction                                               7,800

(f) Refund of 1-month insurance premium because construction completed early              (1,300)

(g) Architect’s fee on building                                                                                               28,600

(h) Cost of real estate purchased as a plant site (land $200,000 and building $50,000)   325,000

(i) Commission fee paid to real estate agency                                                                      11,700

(j) Installation of fences around property                                                                                5,200

(k) Cost of razing and removing building                                                                               14,300

(l) Proceeds from salvage of demolished building                                                                 (6,500)

(m) Interest paid during construction on money borrowed for construction                        16,900

(n) Cost of parking lots and driveways                                                                                24,700

(o) Cost of trees and shrubbery planted (permanent in nature)                                          18,200

(p) Excavation costs for new building                                                                                   3,900

Instructions

Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt

amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.

Other

Item Land Land Improvements Building Accounts