On February 1, 2022, Comet 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, 2022. Costs incurred during this period are listed below: Demolition of old building Architect's fees Legal fees for title investigation and purchase contract Construction costs $ 20,000 35,000 5,000 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 O $330,000 and $1,425,000 O $335,000 and $1,425,000 O $345,000 and $1,415,000 O $330,000 and $1,430,000

On February 1, 2022, Comet 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, 2022. Costs incurred during this period are listed below: Demolition of old building Architect's fees Legal fees for title investigation and purchase contract Construction costs $ 20,000 35,000 5,000 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 O $330,000 and $1,425,000 O $335,000 and $1,425,000 O $345,000 and $1,415,000 O $330,000 and $1,430,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 11P

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