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Asked by Respect The Big Man Code!!!
Bluth's Banana Stand purchased land and built a new building. The costs for the new building were: Building materials $68,000 Labor costs (including architect's fees) 59,000 Rental of equipment used in construction 19,000 Maintenance on the building after the building was completed 6,000 What amount should Bluth's Banana Stand record as the cost of the new building? This question is related to accounting by the way.

Best Answer:
It's either 146,000 or 152,000 I think.

i think 74,000 because it cost 68,000 building materials and 6,000 maintenance..
Answered by lovable

You did not give the price of the land bought, but if you only want the basics from the information provided then Bluth's Banana Stand should record it as $152,000 total, if you want tax included then the total is $161,120
Answered by malkizy3000

I was going to ask if the cost of the property on which the building sits should be figured in, BUT, you asked for our guess on the "cost of the building", and there was no cost listed for the property. Building Materials: $68,000 Labor: $59,000 Rental equipment used: $19,000 Cost for "building the building": $146,000 - They needed the building materials to put the building up. the labor was needed to use the materials to put the building up. The equipment was needed to haul around the building materials to different parts of the work site. The Maintenance should not be figured in as it was needed "after" the building was completed.
Answered by ikuyiasoznas

The building cost is $146,000. The cost of the building is everything that goes into construction. Maintenance has nothing to do with the cost of the building.
Answered by Flyby