On March 1, K Company purchased for 4,500,000 a tract of land as factory site. An existing building on the property was razed and construction was begun on a new factory building in April. Additional data are available as follows: Cost of razing old building 300,000 Title insurance and legal fees to purchase land 200,000 Architect fee 950,000 New building construction cost 8,000,000 What is the cost of factory building?
On March 1, K Company purchased for 4,500,000 a tract of land as factory site. An existing building on the property was razed and construction was begun on a new factory building in April. Additional data are available as follows: Cost of razing old building 300,000 Title insurance and legal fees to purchase land 200,000 Architect fee 950,000 New building construction cost 8,000,000 What is the cost of factory building?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 1, K Company purchased for 4,500,000 a tract of land as factory site. An existing building
on the property was razed and construction was begun on a new factory building in April. Additional
data are available as follows:
Cost of razing old building
300,000
Title insurance and legal fees to purchase land
200,000
Architect fee
950,000
New building construction cost
8,000,000
What is the cost of factory building?
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