Question: Redding Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $420,000. Redding Company decided

Redding Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $420,000. Redding Company decided to construct the addition itself at a cost of $375,000. What amount should be recorded in the building account?

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