Question
Use the following information to answer questions 5 through 8 On March 1, 2019, LAS Company purchased land for an office site. LAS Companybegan construction
Use the following information to answer questions 5 through 8
On March 1, 2019, LAS Company purchased land for an office site. LAS Companybegan construction on the office building on March 1. The following expenditures were incurred for construction:
DateExpenditures
March 1, 2019600,000
June 1, 2019504,000
Aug 1, 2019900,000
Oct 1, 20191,440,000
The payment of March includes the land cost of 200,000.The office was completed on December 31.
LAS borrowed 729,000 on March 1, 2019, on a 9%, 3-year note payable for construction purposes.
Other general loans include 3000,000, 12%, 6-year note payable dated January 1, 2019, and
1,500,000, 9%, 5-year note payable dated January 1, 2019.
LAS earned interest revenues of20,000 for specific borrowing.
What is the total cost of the building
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