Question
On February 1, Barnett Company purchased a parcel of land as a factory site for $165,000.It demolished an old building on the property and began
On February 1, Barnett Company purchased a parcel of land as a factory site for $165,000.It demolished an old building on the property and began construction on a new building that was completed on October 2nd of the same year.Costs incurred during this period are:
Architect's fees $10,000
Construction costs$275,000
Demolition of the old building $9,500
Legal fees for title investigation and purchase contract $5,500
The company sold salvaged materials resulting from the demolition for $5,000.
Required:
At what amount should Barnett record the cost of the LAND and the new BUILDING, respectively?
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