On december 1, 2016, hogan co. purchased a tract of land as a factory site for $780,000. the old building on the property was razed, and salvaged materials resulting from demolition were sold. additional costs incurred and salvage proceeds realized during december 2016 were as follows:

cost to raze old building $70,000

legal fees for purchase contract and to record ownership $10,000

title guarantee insurance $16,000

proceeds from sale of salvaged materials $8,000

in hogan’s december 31, 2016 balance sheet, what amount should be reported as land?

a. $806,000

b. $842,000

c. $868,000

d. $876,000

C) $868,000

Explanation:

The costs associated to the purchase of the tract of land were:

The total cost of the land = purchase price + demolition costs + legal fees + title guarantee insurance - proceeds from salvaged materials = $780,000 + $70,000 + $10,000 + $16,000 - $8,000 = $868,000

The demolition costs are capitalized to land because they are a necessary cost to bring the land into its intended condition. Legal fees and title guarantee are necessary to avoid legal problems.

answer with step-by-step explanation:

a. wx is perpendicular to xy - true:

(since x is adjacent to x and y and all angles are 90 degrees in a square, therefore wx is perpendicular to xy)

b. ∠w is congruent to ∠x - true:

(all angles in a square are equal to each other)

c. ∠w is supplementary to ∠x - true:

(∠w and ∠x both are right angles which add up to 180 degrees so they are supplementary angles)

d. wxyz is a rhombus - true:

(a rhombus has all sides equal in length and so has a square so it is a rhombus)

e. wxyz is a trapezoid - false:

(a trapezoid has only one pair of parallel sides while a square has two pairs of parallel sides)

f. wx is parallel to yz - true:

(wx and yz are parallel to each other)