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Question - Vijay Inc. purchased a three-acre tract of land for a building site for $280,000. On the land was a building with an appraised value of $119,000. The company demolished the old building at a cost of $12,400, but was able to sell scrap from the building for $1,700. The cost of title insurance was $870 and attorney fees for reviewing the contract were $480. Property taxes paid were $2,900, of which $350 covered the period subsequent to the purchase date. The capitalized cost of the land is:
$294,600.
$162,220.
$296,300.
$296,650.
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