On February 1, 2016, Rupport Corporation purchased a parcel of land as a factory site for $50,000.
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Question:
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
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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