Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 3

The General Service Contractor Company paid $400,000 for a house and lot. The value of the land was appraised at $155,000 and the value of the house at $245,000. The house was then torn down at an additional cost of $15,000 so that a warehouse could be built on the combined lots at a cost of $l,250,000. What is the value of the property with the warehouse? For depreciation purposes, what is the cost basis for the warehouse?