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 building recorded by Reid Co. is: Multiple Choice O O $300,000 $326,000 $333,000 $335,000
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 building recorded by Reid Co. is: Multiple Choice O O $300,000 $326,000 $333,000 $335,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 building recorded by Reid Co. is:
Multiple Choice
O
O
$300,000
$326,000
$333,000
$335,000
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