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Question
Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction:
| Architects’ fees | $ 45,000 | |
| Construction labor | 80,000 | |
| Engineers’ fees | 15,000 | |
| Fences around building | 9,000 | |
| Grading and leveling | 10,000 | |
| Insurance costs incurred during construction | 7,000 | |
| Interest on money borrowed for construction | 5,000 | |
| Land | 73,000 | |
| Building materials | 237,000 | |
| Sales taxes | 6,000 | |
| Trees and shrubs | 6,000 |
Determine the cost of the clubhouse to be reported on the balance sheet.
Answer
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