On January 6, 2013, the Mount Jackson Corporation purchased a tract of land for a factory site for $750,000. An existing building on the site was demolished and the new factory was completed on October 11, 2013. Additional cost data are shown below:
Construction cost of new building ........................ $ 880,000
Real estate and attorney fees .................................... 7,700
Architect fees .................................................... 69,000
Cost to demolish old building ................................. 66.600
Salvage recovery from old building ........................... (5.500)
Which of the following correctly states the capitalized cost of the (a) land and (b) the new building?
A. $750,000/$1,017,800
B. $757,700/$1,010,100
C. $824,300/$943,500
D. $818,800/$949,000