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The Reid Co. acquired a piece of land for a new factory paying $100,000. Reid demolished the old building at a cost of $20,000 and sold scrapped material salvaged from the old building for $5,000. The architect’s fees were $25,000, and the title insurance upon acquisition of the land was $1,000. The construction period interest was $8,000, and the contractor

The Reid Co. acquired a piece of land for a new factory paying $100,000. Reid demolished the old building at a cost of $20,000 and sold scrapped material salvaged from the old building for $5,000. The architect’s fees were $25,000, and the title insurance upon acquisition of the land was $1,000. The construction period interest was $8,000, and the contractor received $300,000 for the building. A pavement assessment made by the city cost Reid $2,000 at the purchase date.

The cost of the land recorded by Reid Co. is:

Multiple Choice

  • $100,000

  • $115,000

  • $116,000

  • $118,000

Related Book For  answer-question

Advanced Financial Accounting

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

ISBN: 978-0078025624