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On February 1. 2020, ramble Corp purchased a parcel of and as a fectery site for 325000. And old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Cost incurred during this period are listed below.
Demolition of old building 18800Architects fees 37000Legal fees for title investigation and purchase contract 4700Construction costs 1388000(Salvager materials resulting from demolition were sold for 9500)
Problem 1: Bramble should record the cost of land and new building, respectively, as
Option 1: 334300 and 1429700
Option 2: 348500 and 1415500
Option 3: 334300 and 1425000
Option 4: 339000 and 1425000
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