Reference no: EM132818464

Morocco Corp. purchased land as a factory site for $250,000. They paid $10,000 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1,350. Legal fees of $870 were paid for the title investigation and making the purchase. Architect's fees were $10,300. Title insurance cost $600, and liability insurance during construction cost $650. Excavation costs were $2,610. A contractor was paid $600,000 to construct the new building. An assessment made by the city for pavement was $1,600. Interest costs during construction were $42,500.

Required:

Problem a) What cost should the land be recorded at?

Problem b) What cost should the building record at?