On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $805,000. An existing building on the was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building Real estate and attorney fees Architect fees Cost to demolish old building Salvage recovery from old building Which of the following are the capitalized costs of the land and the new building, respectively? Multiple Choice $883,700 and $1,048,000 $894,700 and $1,037,000 $968,000 15,400 80,000 74,300 (11,000)

On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $805,000. An existing building on the was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building Real estate and attorney fees Architect fees Cost to demolish old building Salvage recovery from old building Which of the following are the capitalized costs of the land and the new building, respectively? Multiple Choice $883,700 and $1,048,000 $894,700 and $1,037,000 $968,000 15,400 80,000 74,300 (11,000)

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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Question

Which of the following are the capitalized costs of the land and the new building respectively

On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $805,000. An existing building on the site
was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below:
Construction cost of new building
Real estate and attorney fees
Architect fees
$968,000
15,400
80,000
Cost to demolish old building
74,300
Salvage recovery from old building
(11,000)
Which of the following are the capitalized costs of the land and the new building, respectively?
Multiple Choice
$883,700 and $1,048,000
$894,700 and $1,037,000

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