Question $4$

$\frac{0}{5\mathrm{.}55}$ points

UMPI Co$.$ purchased land costing $$2,550,000$ as a future factory site. UMPI paid $$240,000$ to tear down

two buildings on the land. Some Amish folks came along and paid them from the scrap lumber. They paid

$$2,450$ cash for it$.$ UMPI paid the lawyer $$4,555$ in fees for the title investigation and for making the

purchase. The architect's fees were $$85,600.$ The cost for the title insurance was $$4,600,$ and liability

insurance costs during the construction phase for the factory was $$12,640.$ The excavation cost to clear the

ground for the new building was $$19,450.$ They paid the building contractor $$8,200,000.$ The interest costs

during the construction phase of the building was $$465,000.$ What should UMPI record as cost of the

building?

$8,200,000$

$9,022,690$

$8,782,690$

$8,770,050$