Reference no: EM132950081

Question - DAFFODIL Company had the following transactions pertaining to its new office building:

Purchase price of land -1,200,000;

Legal fees for contracts to purchase land -140,000;

Architect's fee -256,000;

Demolition of old building on site -315,000;

Sale of scrap from old building -71,000;

Construction cost of new building (fully completed) -2,450,000;

Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -250,000.

At what amount should the building be shown in DAFFODIL's statement of financial position of? Solutions must be presented in good accounting form.