Question
On February 1, 2017, Sheffield Corp. purchased a parcel of land as a factory site for $ 329000 . An old building on the property
On February 1, 2017, Sheffield Corp. purchased a parcel of land as a factory site for $329000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2017. Costs incurred during this period are listed below:
Demolition of old building$19600Architect's fees34200Legal fees for title investigation and purchase contract5600Construction costs1403000(Salvaged materials resulting from demolition were sold for $8400.)
Sheffield should record the cost of the land and new building, respectively, as
$345800 and $1437200.
$340200 and $1442800.
$354200 and $1428800.
$340200 and $1437200.
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