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Foxy Co. purchased a three-acre tract of land for a building site for $320,000. On the land was a building with an appraised value of
Foxy Co. purchased a three-acre tract of land for a building site for $320,000. On the land was a building with an appraised value of $120,000. The company demolished the old building at a cost of $12,000 but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract were $500. Property taxes paid were $3,000 of which $250 covered the period after the purchase date. The capitalized cost of the land is: 1) $336,400. 2) $334,650. 3) $201,150. 4) $336,150
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