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Vijay Inc. purchased a three-acre tract of land for a building site for $320,000. 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 $320,000. On the land was a building with an appraised value of $130,000. The company demolished the old building at a cost of $11,900, but was able to sell scrap from the building for $1,640. The cost of title insurance was $980 and attorney fees for reviewing the contract were $480. Property taxes paid were $3,100, of which $320 covered the period subsequent to the purchase date. The capitalized cost of the land is:
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$191,300.
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$336,460.
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$334,500.
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$336,140.
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