On February 1, 2016, Rupport Corporation purchased a parcel of land as a factory site for $50,000. An old building on the property was demolished, and construction began on a new building that was completed on December 12, 2016. Costs incurred during this period are listed below:

Legal fees for title investigation and purchase contract	5,000
Demolition of old building	$ 15,000
Architect's fees	42,000
Construction costs	1,500,000

Rupport should record the cost of the land and the cost of the new building, respectively, as

$50,000 and $1,562,000

$65,000 and $1,547,000

$70,000 and $1,542,000

$55,000 and $1,557,000

Answer rating: 100% (QA)

Cost of land Purchase price Legal fee ... View the full answer