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During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building: Purchase price of land $
During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building: |
Purchase price of land | $ | 60,000 |
Legal fees for contracts to purchase land | 2,000 | |
Architects fees | 8,000 | |
Demolition of old building on site | 5,000 | |
Sale of scrap from old building | 3,000 | |
Construction cost of new building (fully completed) | 350,000 | |
What amounts should be recorded as the initial values of the land and the building? |
Land | Building | ||
$64,000 | $358,000 |
$65,000 | $362,000 |
$60,000 | $360,000 |
$62,000 | $360,000 |
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