Question

Oriole Company purchased land as a factory site for $1340000. Oriole paid $115000 to tear down two buildings on the land. Salvage was sold for $8000. Legal fees of $5080 were paid for title investigation and making the purchase. Architect's fees were $46200. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15660. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $256000. The cost of the land that should be recorded by Oriole Company is

Answer 1

Answer: $1465480

Step-by-step explanation:

The cost of the land that should be recorded by Oriole Company will be calculated as:

Purchase cost = $1340000

Add: Cost to tear down two buildings = $115000

Add: Legal fees = $5080

Add: Title insurance = $3500

Add: Assessment cost = $9900

Less: Salvage = $8000

Cost of the land = $1465480

Therefore, The cost of the land that should be recorded by Oriole Company is $1465480