Question
On February1, 2017, Nelson Corporation purchased a parcel of land as a factory site for $320,000 . An old building on the property was demolished,
On February1, 2017, Nelson Corporation purchased a parcel of land as a factory site for $320,000 . An old building on the property was demolished, and constraction began on the new building which was completed on November 1, 2017. Cost incurred during this period are listed below: Demolition of old building- $20,000; Architect's fees-$35,000; Legal fees for title investigation and purchase contract -$5,000; Construction costs-$1,390,000; Salvages material resulting from demolition were sold for $10,000. Nelson should record the cost of the land and new buildings respectively,as ???
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