On February 1, 2010, Morgan Company purchased a parcel of land as a factory site for $200,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2010. Costs incurred during this period are listed below: $20,000 - Demolition of old building $35,000 - Architect's fees $5,000 - Legal fees for title investigation and purchase contract. $1,090,000 - Construction costs Salvaged materials resulting from demolition were sold for $10,000. Morgan should record the cost of the land and new building, respectively, as: $225,000 and $1,115,000 $210,000 and $1,130,000 $210,000 and $1,125,000 $215.000 and $1.125.000

On February 1, 2010, Morgan Company purchased a parcel of land as a factory site for $200,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2010. Costs incurred during this period are listed below: $20,000 - Demolition of old building $35,000 - Architect's fees $5,000 - Legal fees for title investigation and purchase contract. $1,090,000 - Construction costs Salvaged materials resulting from demolition were sold for $10,000. Morgan should record the cost of the land and new building, respectively, as: $225,000 and $1,115,000 $210,000 and $1,130,000 $210,000 and $1,125,000 $215.000 and $1.125.000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

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Similar questions

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