Question

Sheffield Corp. purchased land as a factory site for $1360000. Sheffield paid $116000 to tear down two buildings on the land. Salvage was sold for $8500. Legal fees of $5400 were paid for title investigation and making the purchase. Architect's fees were $46300. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15540. The contractor was paid $4500000. An assessment made by the city for pavement was $9500. Interest costs during construction were $252000. The cost of the land that should be recorded by Sheffield Corp. is $1486300. $1490900. $1476800. $1500400.

Answer 1

a. $1,486,300

Step-by-step explanation:

Particulars Amount

Purchase cost $1,360,000

Cost to tear down two buildings $116,000

Salvage -$8,500

Legal fees $5,400

Title insurance $3,900

Assessment cost $9,500

Cost of the land $1,486,300