Question: On February 1 , 2 0 2 0 , Nelson Corporation purchased a parcel of land as a factory site for $ 3 2 0

On February 1,2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1,2020. Costs incurred during this period are listed below:Demolition of old building$20,000Architect's fees35,000Legal fees for title investigation and purchase contract5,000Construction costs1,390,000(Salvaged materials resulting from demolition were sold for $10,000.)Nelson should record the cost of the land and new building, respectively, asa. $345,000 and $1,415,000.b. $330,000 and $1,430,000.c. $330,000 and $1,425,000.d. $335,000 and $1,425,000.

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