Question
Vaughn Manufacturing purchased land as a factory site for $1330000. Vaughn paid $112000 to tear down two buildings on the land. Salvage was sold for
Vaughn Manufacturing purchased land as a factory site for $1330000. Vaughn paid $112000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5000 were paid for title investigation and making the purchase. Architect's fees were $46300. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15440. The contractor was paid $4400000. An assessment made by the city for pavement was $9600. Interest costs during construction were $257000. The cost of the building that should be recorded by Vaughn Manufacturing is
| $4407040. |
| $4419700. |
| $4722540. |
| $4405800. |
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