The company constructed its own building. The cost of materials was $400,000. Labour cost incurred on the construction project was $600,000. Total overhead cost for the company for the year was $8,000,000; total labour cost (including the cost of construction) was $4,000,000. Interest incurred to finance the construction cost was $140,000. Compute the total cost of the 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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Compute the total cost of the building. On these general accounting question

The company constructed its own building. The cost of
materials was $400,000. Labour cost incurred on the
construction project was $600,000. Total overhead cost for the
company for the year was $8,000,000; total labour cost
(including the cost of construction) was $4,000,000. Interest
incurred to finance the construction cost was $140,000.
Compute the total cost of the building.
Transcribed Image Text:The company constructed its own building. The cost of materials was $400,000. Labour cost incurred on the construction project was $600,000. Total overhead cost for the company for the year was $8,000,000; total labour cost (including the cost of construction) was $4,000,000. Interest incurred to finance the construction cost was $140,000. Compute the total cost of the building.
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