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Kingbird Company purchased land for $114600 with the intentions of constructing a new operating facility. The land purchase included a dilapidated building that was removed
Kingbird Company purchased land for $114600 with the intentions of constructing a new operating facility. The land purchase included a dilapidated building that was removed at a cost of $16300. The only salvage value from this old building was some materials which were sold for proceeds of $4100. Kingbird had paid surveying costs of $1900 and legal fees related to land transfer of $7000. The new building was quickly constructed at a total cost of $422800. Permits on the construction of this new facility totalled $17400. Insurance premiums of $8600 are paid annually. The production manager is currently on-site facilitating the production startup. This manager is an annual salary of $85500. What capital cost is assigned to the land? $135700 $123500 $114600 $126800
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