On January 6, 2016, the Mount Jackson Corporation purchased a tract of land for

Question

On January 6, 2016, the Mount Jackson Corporation purchased a tract of land for a factory site for $795,000. An existing building on the site was demolished and the new factory was completed on October 11, 2016. Additional cost data are shown below:

Construction cost or new building $952,000

Real estate and attorney fees 14,000

Architect fees 78,000

Cost to demolish old building 72,900

Salvage recovery from old building (10,000)

Which of the following correctly states the capitalized cost of the (a) land and (b) the new building? A$871,900/$1,030,000

B$881,900/$1,020,000

C$809,000/$1,092,900

D$795,000/$1,106,900

Explanation / Answer

Tract of Land 795000 Construction cost of building 952000 Real Estate 14000 Architect Fees 78000 62900 Building 1106900 The correct answer is D. $ 795000/1106900

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.