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1 Morris Corporation purchased a parcel of land as a factory site for $400,000. An old building on the property was demolished, and construction 2 began on a new building . Costs incurred during this period are listed below: 3 7. 5 Demolition of old building Architect's fees Legal fees for title investigation and purchase contract Construction costs (Salvaged materials resulting from demolition were sold for $15,000.) 25,000 40,000 10,000 1,640,000 5 7 3 1 a. 2 o Morris should record the cost of the land and new building, respectively, as $420,000 and $1,680,000. b. $410,000 and $1,690,000. $400,000 and $1,705,000. d. $385,000 and $1,715,000. 3 c. 4 5 6 7 8