Solved

On January 6, Year 1, the Mount Jackson Corporation Purchased

Question 31

Multiple Choice

On January 6, Year 1, the Mount Jackson Corporation purchased a tract of land for a factory site for $1,500,000. An existing building on the site was demolished and the construction of the new factory building was completed on October 11, Year 1. Additional cost data are shown below:  construction cost of new building $1,760,000Realtor’s and attorney’s fees 15,400 Architect’s fees relating to construction of new138,000 building  Cost to demolish old building133,200 Salvage recovery from old building (11,000) \begin{array}{llr} \text { construction cost of new building } &\$1,760,000\\ \text {Realtor's and attorney's fees } &15,400\\ \text { Architect's fees relating to construction of new} &138,000\\ \text { building } &\\ \text { Cost to demolish old building} &133,200\\ \text { Salvage recovery from old building } &(11,000) \\\end{array}
Which of the following correctly states the capitalized cost of the land and the new factory building, respectively?


A) $1,637,600 and $1,898,000
B) $1,515,400 and $2,020,200
C) $1,648,600 and $1,887,000
D) $1,500,000 and $2,035,600

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents