Exercise 8-2 (Algo) Recording costs of assets LO C1 Cala Manufacturing purchases land for $305,000 as part of its plans to build a new plant. The company pays $25,600 to tear down an old building on the lot and $37,843 to fill and level the lot. It also pays construction costs $1,316,800 for the new building and $83,120 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Answeri believe the correct answer is (d) the community's raffling of names will cause little interruption in its daily life; //