Sandhill Chrome Bumpers bought two acres of land with an old office building on it that was deemed unusable. The cost was $470,400 of which Sandhill Chrome paid $78,400 in cash as a down payment and signed a 7% mortgage for the remainder. Sandhill Chrome immediately had the old building razed at a total cost of $8,490 and sold the salvaged materials for $2,120. Attorneys were paid $1,060 in connection with the purchase. The architect’s fee for drawing building plans for the new building cost $6,700. Sandhill Chrome paid $3,020 in connection with permits and zoning variances necessary prior to the construction of the new building. Sandhill Chrome paid the contractor $1,391,600 for the construction of the new building, along with $41,160 for a parking lot and necessary walkways and driveways. Answer the following question.

 a. At what amount should the land be recorded?

 b.At what amount should the new office building be recorded?

Answer rating: 100% (QA)

a Sandhill Chrome Bumpers bought two acres of land with an old office building on it that was d... View the full answer