On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $780,000. 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 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 $780,000 and $1,077,200 $862,700 and $994,500 $791,900 and $1,065,300 $854,200 and $1,003,000 $928,000 11,900 75,000 70,800 (8,500)
On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $780,000. 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 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 $780,000 and $1,077,200 $862,700 and $994,500 $791,900 and $1,065,300 $854,200 and $1,003,000 $928,000 11,900 75,000 70,800 (8,500)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $780,000. 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
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
$780,000 and $1,077,200
$862,700 and $994,500
$791,900 and $1,065,300
$854,200 and $1,003,000
$928,000
11,900
75,000
70,800
(8,500)
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