Gamma Corporation purchased land to be used as a factory site for $1,500,000. Gamma paid...
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Gamma Corporation purchased land to be used as a factory site for $1,500,000. Gamma paid $150,000 to tear down two buildings on the land. Salvage was sold for $20,000. Legal fees of $10,000 were paid for title investigation and making the land purchase. Architect's fees were $50,000. Tax on the purchase of land was $5,000. Excavation cost $18,000. The contractor was paid $5,200,000. Landscaping cost $15,000. Interest costs during construction were $155,000. What is the historical cost of the land that should be recorded by Gamma? $1,645,000 $1,660,000 $1,678,000 $1,535,000
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