Question

On March 1, 2021, Beldon Corporation purchased land as a factory site for $66,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below:

Demolition of old building $7,000
Architect's fees (for new building) $18,000
Legal fees for title investigation of land $5,000
Property taxes on land (for period beginning March 1, 2021) $3,600 Construction costs $560,000
Interest on construction loan $8,000

Salvaged materials resulting from the demolition of the old building were sold for $2,600.

1. cost of land

2. cost of building

Answer 1

To determine the total price change, we would need the coefficient of thermal expansion for the steel tape measure, which is not provided. The effect on measurement is likely minimal, but without exact data, the precise price change cannot be calculated.

Step-by-step explanation:

The question involves calculating the potential change in total price of a piece of land due to thermal expansion affecting the measurements obtained with a steel tape measure. When the temperature rises, materials expand, and this could result in a slightly longer measurement of land dimensions. To accurately determine the price change due to this expansion, one would need to know the coefficient of thermal expansion for steel and perform calculations to see how much the length of the tape measure changes.

However, the original scenario does not provide enough information to calculate the exact price change. Without specific data on the thermal expansion properties of the tape measure and the exact temperature change, we can only posit that the overall effect on measurement would likely be minimal, given the relatively small size of the land and the short length of the tape measure.

The high cost of land in Hong Kong at $60,000 per square meter also suggests that even a slight inaccuracy in size due to temperature change can lead to a significant difference in price. Nonetheless, in the absence of specific coefficients and actual measurements, it is not possible to provide an exact figure for the total price change.