On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $1,500,000. 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 $ 1,760,000 Real estate and attorney fees 15,400 Architect fees 138,000 Cost to demolish old building 133,200 Salvage recovery from old building (11,000) Which of the following are the capitalized costs of the land and the new building, respectively? $1,637,600 and $1,898,000 O $1,515,400 and $2,020,200 O $1,648,600 and $1,887,000 $1.500.000 and $2.035.600
On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $1,500,000. 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 $ 1,760,000 Real estate and attorney fees 15,400 Architect fees 138,000 Cost to demolish old building 133,200 Salvage recovery from old building (11,000) Which of the following are the capitalized costs of the land and the new building, respectively? $1,637,600 and $1,898,000 O $1,515,400 and $2,020,200 O $1,648,600 and $1,887,000 $1.500.000 and $2.035.600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site
for $1,500,000. 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 $ 1,760,000
Real estate and attorney fees 15,400
Architect fees
138,000
Cost to demolish old building
133,200
Salvage recovery from old building (11,000)
Which of the following are the capitalized costs of the land and the new building,
respectively?
O $1,637,600 and $1,898,000
O $1,515,400 and $2,020,200
O $1,648,600 and $1,887,000
O $1,500,000 and $2,035,600
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