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On February 1, 2013, Edwards Corporation purchased a parcel of land as a factory site for $250,000. It demolished an old building on the property
- On February 1, 2013, Edwards Corporation purchased a parcel of land as a factory site for $250,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2013. Edwards has no debt. Costs incurred during this period were:
Demolition of old building | $6,000 |
Sale of salvaged materials from the demolition | 1,000 |
Architects fees | 12,000 |
Legal fees for land purchase | 2,000 |
Construction costs | 600,000 |
Required:
At what amount should Edwards record the cost of the land and the new building, respectively?
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