On February 1, 2025, Sheffield Corp. purchased a parcel of land as a factory site for $329000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2025. Costs incurred during this per are listed below:
On February 1, 2025, Sheffield Corp. purchased a parcel of land as a factory site for $329000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2025. Costs incurred during this per are listed below:
Chapter1: Financial Statements And Business Decisions
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
Transcribed Image Text:On February 1, 2025, Sheffield Corp. purchased a parcel of land as a factory site for $329000. An old building on the property was
demolished, and construction began on a new building which was completed on November 1, 2025. 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
1403000
(Salvaged materials resulting from demolition were sold for $8400)
$ 19600
34200
$340200 and $1442800
O $354200 and $1428800
O $340200 and $1437200.
O $345800 and $1437200.
5600
Sheffield should record the cost of the land and new building, respectively, as
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