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Vijay Inc. purchased a three-acre tract of land for a building site for $350,000. On the land was a building with an appraised value of
Vijay Inc. purchased a three-acre tract of land for a building site for $350,000. On the land was a building with an appraised value of $118,000. The company demolished the old building at a cost of $11,700, but was able to sell scrap from the building for $1,610. The cost of title insurance was $810 and attorney fees for reviewing the contract were $540. Property taxes paid were $3,000, of which $350 covered the period subsequent to the purchase date. The capitalized cost of the land is: |
a) | $365,700. |
b) | $364,090. |
c) | $366,050. |
d) | $233,160. |
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