43) Harwood Company purchased an office building for $5,000,000 cash on April 1. Prior to...
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43) Harwood Company purchased an office building for $5,000,000 cash on April 1. Prior to renting it out to tenants on July 1, Harwood spent $1,000,000 on materials and labor to renovate the property. It funded $100,000 of the renovation cost with its own funds and borrowed the remaining $900,000. As of July 1, $10,000 of interest had been paid to the bank, but none of the principal had been repaid. The basis of the building on July 1 is A) $5,000,000 B) $5,100,000. C) $6,000,000 D) $6,010,000
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