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Question - XYZ Co. purchased land as a factory site for Br.600,000. XYZ paid Br.60,000 to tear down two buildings on the land. Salvage was sold for Br.5,400. Legal fees of Br.3,480 were paid for title investigation and making the purchase. Architect's fees were Br.31,200. Title insurance cost Br.2,400, and liability insurance during construction cost Br.2,600. Excavation cost Br.10,440. The contractor was paid Br.2,200,000. An assessment made by the city for pavement was Br.6,400. Interest costs during construction were Br.170,000.
Required - Compute the cost of land and cost of building that should be recorded by XYZ Co.
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