On January 6, 2021, the Mount Jackson Corporation purchased a tract of land for a factory...

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On January 6, 2021, the Mount Jackson Corporation purchased a tract of land for a factory site for $700,000. An existing building on the site was demolished and the new factory was completed on October 11, 2021. Additional cost data are shown below: Title Search and Transfer Documents $ 2,500 Construction Cost of New Building 850,000 Real Estate and Attorney Fees 6,400 Architect Fees 65,000 Cost to demolish old building 63,300 Salvage Recovery from old building (5,000) Which of the following correctly states the capitalized cost of the (a) land and (b) the new building? a. $708,900/$973,300 b. $703,900/$978,300 c. $767,200/$915,000 d. $700,000/$982,200 On January 6, 2021, the Mount Jackson Corporation purchased a tract of land for a factory site for $700,000. An existing building on the site was demolished and the new factory was completed on October 11, 2021. Additional cost data are shown below: Title Search and Transfer Documents $ 2,500 Construction Cost of New Building 850,000 Real Estate and Attorney Fees 6,400 Architect Fees 65,000 Cost to demolish old building 63,300 Salvage Recovery from old building (5,000) Which of the following correctly states the capitalized cost of the (a) land and (b) the new building? a. $708,900/$973,300 b. $703,900/$978,300 c. $767,200/$915,000 d. $700,000/$982,200