Question

Sheffield Corp. purchased land as a factory site for $1345000. Sheffield paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5080 were paid for title investigation and making the purchase. Architect's fees were $46500. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15660. The contractor was paid $4200000. An assessment made by the city for pavement was $9500. Interest costs during construction were $257000. The cost of the land that should be recorded by Sheffield Corp. is

Answer 1

$1,470,980

Step-by-step explanation:

Calculation for what The cost of the land that should be recorded by Sheffield Corp. is

Using this formula

Cost of the land=Purchased land+ Payment for buildings on the land-Salvage sold+Legal fees+Insurance cost+Assessment cost

Let plug in the formula

Cost of the land=$1,345,000 + $116,000 - $8,100 + $5,080 + $3,500 + $9,500

Cost of the land= $1,470,980

Therefore The cost of the land that should be recorded by Sheffield Corp. is $1,470,980