On February 1, 2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000. 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 pold building                   $20,000                                                 Arcchitects fees                                       $35,000                                                 Legal Fees for title investigation and purchase contract           $5,000              Contruction Cost                                 $1,390,000                                            Salvaged materials resulting from demolition were sold for $10,000.                                                                       Nelson should record the cost of the land and new building, respectively, as A) $330,000 and $1,425,000.                                                                            B) $345,000 and $1,415,000.                                                                             C) $335,000 and $1,425,000.                                                                         D) $330,000 and $1,430,000.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On February 1, 2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000. 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 pold building                   $20,000                                                 Arcchitects fees                                       $35,000                                                 Legal Fees for title investigation and purchase contract           $5,000              Contruction Cost                                 $1,390,000                                            Salvaged materials resulting from demolition were sold for $10,000.                                                                      

Nelson should record the cost of the land and new building, respectively, as

A) $330,000 and $1,425,000.                                                                            B) $345,000 and $1,415,000.                                                                             C) $335,000 and $1,425,000.                                                                         D) $330,000 and $1,430,000. 

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