Question
On February 1, 2020, Sudan Corp. purchased a parcel of land for $310,000 as a factory site. An old building on the property was demolished,
On February 1, 2020, Sudan Corp. purchased a parcel of land for $310,000 as a factory site. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below:
Demolition of old building $ 25,000
Architect's fees 45,000
Legal fees for title investigation and purchase contract 5,000
Construction costs 990,000
(Salvaged materials resulting from demolition were sold for $ 10,000.)
Sudan should record the cost of the land and new building, respectively, at
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