Yani Company purchased land for $115,000 with the intentions of constructing a new operating facility. The land purchase included a dilapidated building that was removed at a cost of $16,000. The only salvage value from this old building was some materials which were sold for proceeds of $4,000. Yani had paid surveying costs of $1,800 and legal fees related to land transfer of $6,700. The new building was quickly constructed at a total cost of $422,000. Permits on the construction of this new facility totalled $18,000. Insurance premiums of $9,200 are paid annually. The production manager is currently on-site facilitating the production startup. This manager is an annual salary of $85,000. What capital cost is assigned to the new building? Select one: O A. $440,000 OB. $452,000 O C. $534,200 O D. $449,200 4

Yani Company purchased land for $115,000 with the intentions of constructing a new operating facility. The land purchase included a dilapidated building that was removed at a cost of $16,000. The only salvage value from this old building was some materials which were sold for proceeds of $4,000. Yani had paid surveying costs of $1,800 and legal fees related to land transfer of $6,700. The new building was quickly constructed at a total cost of $422,000. Permits on the construction of this new facility totalled $18,000. Insurance premiums of $9,200 are paid annually. The production manager is currently on-site facilitating the production startup. This manager is an annual salary of $85,000. What capital cost is assigned to the new building? Select one: O A. $440,000 OB. $452,000 O C. $534,200 O D. $449,200 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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