On February 1, 2020, Sheridan Company purchased a parcel of land as a factory site for $315000. 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 $ 18600 Architect's fees 35500 Legal fees for title investigation and purchase contract 5700 Construction costs 1387000 (Salvaged materials resulting from demolition were sold for $9700.) Sheridan should record the cost of the land and new building, respectively, as $323900 and $1428200. $323900 and $1422500. $329600 and $1422500. $339300 and $1412800.
On February 1, 2020, Sheridan Company purchased a parcel of land as a factory site for $315000. 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 $ 18600 Architect's fees 35500 Legal fees for title investigation and purchase contract 5700 Construction costs 1387000 (Salvaged materials resulting from demolition were sold for $9700.) Sheridan should record the cost of the land and new building, respectively, as $323900 and $1428200. $323900 and $1422500. $329600 and $1422500. $339300 and $1412800.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Q10.3
On February 1, 2020, Sheridan Company purchased a parcel of land as a factory site for $315000. 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 | $ | 18600 | |
| Architect's fees | 35500 | ||
| Legal fees for title investigation and purchase contract | 5700 | ||
| Construction costs | 1387000 | ||
| (Salvaged materials resulting from demolition were sold for $9700.) |
Sheridan should record the cost of the land and new building, respectively, as
$323900 and $1428200.
$323900 and $1422500.
$329600 and $1422500.
$339300 and $1412800.
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