on december 1 2006 boyd co purchased a 400 000 tract of land for a factory site boyd 603549
On December 1, 2006, Boyd Co. purchased a $400,000 tract of land for a factory site. Boyd razed an old building on the property and sold the materials it salvaged from the demolition. Boyd incurred additional costs and realized salvage proceeds during December 2006 as follows:
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|
Demolition of old building |
$50,000 |
|
Legal fees for purchase contract and recording ownership |
10,000 |
|
Title guarantee insurance |
12,000 |
|
Proceeds from sale of salvaged materials |
8,000 |
In its December 31, 2006 balance sheet, Boyd should report a balance in the land account of
- $464,000
- $460,000
- $442,000
- $422,000