On January 6, Year 1, the Mount Jackson Corporation purchased a tract of land for a factory site for $755,000. An existing building on the site was demolished and the construction of the new factory building was completed on October 11, Year 1. Additional cost data are shown below

 

TB MC Qu. 6-39 (Algo) On January 6, Year 1, the... On January 6, Year 1, the Mount Jackson Corporation purchased a tract of land for a factory site for $755,000. An existing building on the site was demolished and the construction of the new factory building was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building Realtor's and attorney's fees Architect's fees relating to construction of new building Cost to demolish old building Salvage recovery from old building Which of the following correctly states the capitalized cost of the land and the new factory building, respectively? Multiple Choice $755,000 and $1,027,700 $830,700 and $952,000 $763,400 and $1,019,300 $888,000 8,400 70,000 67,300 (6,000) $824,700 and $958,000