Martin Buber Co. purchased land as a factory site

Question 1Martin Buber Co. purchased land as a factory site for $608,400. The process of tearing down two old buildings on the site and constructing the factory required 6 months.The company paid $63,882 to raze the old buildings and sold salvaged lumber and brick for $9,582. Legal fees of $2,814 were paid for title investigation and drawing the purchase contract. Martin Buber paid $3,346 to an engineering firm for a land survey, and $103,428 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $2,282, and a liability insurance premium paid during construction was $1,369. The contractor’s charge for construction was $4,167,540. The company paid the contractor in two installments: $1,825,200 at the end of 3 months and $2,342,340 upon completion. Interest costs of $258,570 were incurred to finance the construction.Determine the cost of the land and the cost of the building as they should be recorded on the books of Martin Buberk Co. Assume that the land survey was for the building.a. Cost of the Land=____________b. Cost of the Building=_____________Question 2On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2014. To help finance construction, on July 31 Amsterdam issued a $627,600, 3-year, 10% note payable at Netherlands National Bank, on which interest is payable each July 31. $492,600 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 8% until November 1. On November 1, Amsterdam made a final $135,000 payment to Minsk. Other than the note to Netherlands, Amsterdam’s only outstanding liability at December 31, 2014, is a $31,100, 6%, 6-year note payable, dated January 1, 2011, on which interest is payable each December 31.Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2014. (Round answers to the nearest whole dollar, e.g. 5,275)A. Interest revenue=_______________________B. Weighted-average accumulated expenditures=_______________C. Avoidable interest=____________________D. Interest capitalized=________________Question 3Dana Ashbrook Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $9,384 plus trade-in, f.o.b. factory. Dana Ashbrook Inc. paid $9,384 cash and traded in used equipment. The used equipment had originally cost $72,726; it had a book value of $49,266 and a secondhand fair value of $56,069, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $1,290.(a)Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCredit