On February 1, 2007, Morgan Corporation purchased a parcel of land as a factory site for $200,000.An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2007.Costs incurred during this period are listed below: $$\begin{array} { l r }
\text { Demolition of old building } & \$ 20,000 \
\text { Architect's fees } & 35,000 \
\text { Legal fees for title investigation and purchase contract } & 5,000 \
\text { Construction costs } & 1,090,000 \
\text { (Salvaged materials resulting from demolition were sold for } \$ 10,000 . )
\end{array}$$ Morgan should record the cost of the land and new building, respectively, as

Question

On February 1, 2007, Morgan Corporation purchased a parcel of land as a factory site for $200,000.An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2007.Costs incurred during this period are listed below: $$\begin{array} { l r } 
\text { Demolition of old building } & \$ 20,000 \
\text { Architect's fees } & 35,000 \
\text { Legal fees for title investigation and purchase contract } & 5,000 \
\text { Construction costs } & 1,090,000 \
\text { (Salvaged materials resulting from demolition were sold for } \$ 10,000 . )
\end{array}$$ Morgan should record the cost of the land and new building, respectively, as

Quizplus · Accepted Answer

The Answer of On February 1, 2007, Morgan Corporation purchased a parcel of land as a factory site for $200,000.An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2007.Costs incurred during this period are listed below: $$\begin{array} { l r } 
\text { Demolition of old building } & \$ 20,000 \
\text { Architect's fees } & 35,000 \
\text { Legal fees for title investigation and purchase contract } & 5,000 \
\text { Construction costs } & 1,090,000 \
\text { (Salvaged materials resulting from demolition were sold for } \$ 10,000 . )
\end{array}$$ Morgan should record the cost of the land and new building, respectively, as

On February 1, 2007, Morgan Corporation Purchased a Parcel of Land