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Building 1 and build a new store in its place. Bui...

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Question

Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $826,000, with a useful life of 20 years and an $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $383,500 that are expected to last another 12 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,740,500. Solaris also incurs the following additional costs: Cost to demolish Building 1 $ 346,400 Cost of additional land grading 193,400 Cost to construct new building (Building 3), having a useful life of 25 years and a $400,000 salvage value 2,302,000 Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000

 

Paper#7816 | Written in 18-Jul-2015

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