On February 1, 2020, Crane Company purchased a parcel of land as a factory site...
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Accounting
On February 1, 2020, Crane Company purchased a parcel of land as a factory site for $318000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below:
Demolition of old building
$
21000
Architect's fees
36000
Legal fees for title investigation and purchase contract
5300
Construction costs
1392000
(Salvaged materials resulting from demolition were sold for $10800.)
Crane should record the cost of the land and new building, respectively, as
$328200 and $1433300.
$328200 and $1428000.
$344300 and $1417200.
$333500 and $1428000.
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