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1. On February 10, 2013, Rims Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on September 30, 2013. Salvaged materials resulting from the demolition were sold for $10,000. Costs incurred during this period included: Demolition of old building.... $40,000, Architect's fees.... $20,000, Legal fees for title investigation and purchase contract.... $6,000, and Construction costs.... $750,000. Rims should record the cost of the land and new building, respectively, as
a. $286,000 and $770,000
b. $286,000 and $750,000
c. $250,000 and $770,000
d. $250,000 and $750,000
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