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 land?

Answer rating: 100% (QA)

To determine the cost of the land for UMPI Co we need to consider the relevant expenses directly ass... View the full answer