Question

on february 1, 2014, nelson corporation purchased a parcel of land as a factory site for $246,726. an old building on the property was demolished, and construction began on a new building which was completed on november 1, 2014. costs incurred during this period are listed below:demolition of old building$21,233architect's fees$30,407legal fees for title investigation and purchase contract$4,679construction costs$1,254,726 salvaged materials resulting from demolition were sold for $10000the company also spent $2,052 to fence the property. what is the cost of the building?

Answer 1

The cost of the building for Nelson Corporation is $1,303,097.

Step-by-step explanation:

The cost of the building for Nelson Corporation includes various expenses associated with the construction and preparation of the land. This cost is calculated by adding the demolition of the old building, architect's fees, legal fees, construction costs, and the cost for fencing the property. However, the proceeds from the sale of salvaged materials should be deducted from these costs.

Thus, the calculation is as follows:

• Demolition of old building: $21,233
• Architect's fees: $30,407
• Legal fees for title and purchase contract: $4,679
• Construction costs: $1,254,726
• Fencing costs: $2,052
• Less: Sale of salvaged materials: ($10,000)

Adding all these amounts gives us the total cost of the building:

$21,233 (demolition) + $30,407 (architect's fees) + $4,679 (legal fees) + $1,254,726 (construction costs) + $2,052 (fencing costs) - $10,000 (salvaged materials) = $1,303,097.

Therefore, the total cost of the building is $1,303,097.