Dok int rences On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,600,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below. Construction cost of new building Cost of demolishing old building Proceeds from sale of lumber from old building Architect's fees relating to construction of new building Title insurance and attorney's fee for purchase of land Required: Compute the capitalized cost of (1) the land and (2) the new factory building. 1. Land 2. New factory building $7,500,000 137,500 22,000 225,000 82,500

On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,600,000. An existing building on the property was demolished, and construction was begun on a new factory buliding in July Year 1 and completed December 15, Year 1. Cost data are