16. Vijey Inc. purchased a three-acre tract of land for a bulding site for $330,

Question

16. Vijey Inc. purchased a three-acre tract of land for a bulding site for $330,000. On the land was a bullding with an appralsed value of $126,000. The company demollshed the old building at a cost of $11,000, but was able to sel scrap from the bulding for $1,660. The cost of tite Insurance was $810 and attorney fees for reviewing the contract were $470. Property taxes paid were $2,900, of which $170 covered the perlod subsequent to the purchase date. The capitalized cost of the land is: O $345,180. O $343,350 O $345.010. O $204,980. esc F3 FS 2 4 8

Explanation / Answer

Purchase price 330000 Demolition costs 11000 Scrap sold -1660 Title insurance 810 Legal fees 470 Property taxes 2730 Total cost of land 343350 Option 2 is correct

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