Wilson Service Company was incorporated on January 2, 2016. Wilson began its operations on August 15, 2016. During the period 01-02-16 to 08-15-16, Wilson entered into the following transactions:
a. Incurred $100,000 of legal fees related to corporate organization.
b. Purchased land for $4,650,000. Wilson’s corporate office building will sit on this land.
c. Incurred $50,000 of legal fees for a title search related to the land.
d. Paid $400,000 to level the land, $750,000 to remove toxic materials from the land, and $15,000 to tear down an old building on the land.
e. Sold salvage from the old building for $45,000.
f. Paid architect's fees of $100,000 for the office building.
g. In erecting the building, incurred $200,000 of excavation costs, $20,000,000 of construction costs, and $1,250,000 of capitalized interest costs.
h. Purchased for $36,000 a one-year insurance premium covering the office building.
• What is the balance in Wilson’s land account?
• What is the balance in Wilson’s building account?
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- Submitted On 22 Jun, 2017 03:40:47