Reference no: EM132459254

Question 1: On February 12, Laker Company purchased a tract of land as a factory site for $175,000. An existing building on the property was razed and construction began on a new factory building in March of the same year. Additional data are as follows:

Problem 1: What will be the recorded cost of the completed factory building?

A. $930,000 B. $952,500 C. $917,500 D. $910,000

Cost of razing old building 5                                                            35,000

Title insurance and legal fees to purchase land 12,000 Architect's fees   42, 500

New building construction cost                                                         $75,000