February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of...

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February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $112,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were: Item Amount Demolition dilapidated building $3,600 Architect Fees $11,250 Legal Fees - for title search $1,900 Interest During Active Construction Period $5,025 Real estate transfer tax $1,200 $605,000 Construction Costs Using this information, how much should be recorded as the cost of the land? February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $112,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were: Item Amount Demolition dilapidated building $3,600 Architect Fees $11,250 Legal Fees - for title search $1,900 Interest During Active Construction Period $5,025 Real estate transfer tax $1,200 $605,000 Construction Costs Using this information, how much should be recorded as the cost of the land?

Answer rating: 100% (QA)

Cost of Land Particulars Amt in Purchase price 112000 Demolition dilapidated building 3600 Legal fees for title search 1900 Total 117500 Note 1 Architect fees should be capitalised to cost of building 2 Interest during the active construction period should be capitalised to cost of building 3 ... View the full answer