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 $888,000 8,400 70,000 67,300 (6,000) 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 O $830,700 and $952.000 O $763,400 and $1,019,300 $824,700 and $958,000