On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $840,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building$1,024,000? Real estate and attorney fees 20,300? Architect fees 87,000? Cost to demolish old building 79,200? Salvage recovery from old building (14,500)?Which of the following are the capitalized costs of the land and the new building, respectively?
A. $939,500 and $1,096,500
B. $840,000 and $1,196,000
C. $925,000 and $1,111,000
D. $860,300 and $1,175,700
Answer: C
Business
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