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Business, 17.03.2020 04:54 jackson5637

Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $273,000 for the lot plus $168,000 for the old building. The company pays $44,200 to tear down the old building and $65,339 to fill and level the lot. It also pays a total of $1,495,495 in construction costs—this amount consists of $1,406,700 for the new building and $88,795 for lighting and paving a parking area next to the building. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

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