On February 1, 2020, Sunland Company purchased a parcel of land as a factory site for $313000. 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 $ 19600 Architect's fees 33700 Legal fees for title investigation and purchase contract 5700 Construction costs 1388000 (Salvaged materials resulting from demolition were sold for $10600.) Sunland should record the cost of the land and new building, respectively, as O $322000 and $1427400. $322000 and $1421700. O $338300 and $1411100. O $327700 and $1421700.

On February 1, 2020, Sunland Company purchased a parcel of land as a factory site for $313000. 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 $ 19600 Architect's fees 33700 Legal fees for title investigation and purchase contract 5700 Construction costs 1388000 (Salvaged materials resulting from demolition were sold for $10600.) Sunland should record the cost of the land and new building, respectively, as O $322000 and $1427400. $322000 and $1421700. O $338300 and $1411100. O $327700 and $1421700.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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