On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $795,000. 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$952,000? Real estate and attorney fees 14,000? Architect fees 78,000? Cost to demolish old building 72,900? Salvage recovery from old building (10,000)?Which of the following are the capitalized costs of the land and the new building, respectively?
A. $809,000 and $1,092,900
B. $881,900 and $1,020,000
C. $871,900 and $1,030,000
D. $795,000 and $1,106,900
Answer: C
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