Question
The following expenditures were incurred by John Legend Company in 2020. Cost of land, 4.500.000 Expenses of land survey, 30,000 Expenses for search of land
The following expenditures were incurred by John Legend Company in 2020.
Cost of land, 4.500.000
Expenses of land survey, 30,000
Expenses for search of land title, 6,000
Building permit fee, 10,000
Temporary building to house materials and construction workers, 50,000
Demolition of old building, 40,000
Payments to tenants to vacate old building, 60,000
Payments to construction workers for injuries sustained, 85,000
Interest on temporary loan for construction, 90,000
Cost of paving parking area adjoining building, 45,000
Excavation expenses for foundation of building, 150,000
Cost of construction, 9,800,000
Using the interpretations of the PIC, what is the cost of land?
Group of answer choices
4,461,000
4,536,000
4,596,000
4,636,000
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