On January lemolished 6, Year 1, the Mount Jackson Corporation pu and the construction of the new factory buil Construction cost of new building Realtor's and attorney's fees Architect's fees relating to constructi Cost to demolish old building

On January lemolished 6, Year 1, the Mount Jackson Corporation pu and the construction of the new factory buil Construction cost of new building Realtor's and attorney's fees Architect's fees relating to constructi Cost to demolish old building

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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On January 6, Year 1, the Mount Jackson Corporation purchased a tract of land for a factory site for $830,000. An existing building on the site was
demolished and the construction of the new factory building was completed on October 11, Year 1. Additional cost data are shown below:
Construction cost of new building
Realtor's and attorney's fees
Architect's fees relating to construction of new building
Cost to demolish old building
Salvage recovery from old building
Which of the following correctly states the capitalized cost of the land and the new factory building, respectively?
Multiple Choice
$926,700 and $1,079,500
$830,000 and $1,176,200
$913,200 and $1,093,000
$1,008,000
18,900
85,000
77,800
(13,500)
$848,900 and $1,157,300

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