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Sheffield Co. purchased land as a factory site for $592,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months.
Problem 1: Determine the cost of the land and the cost of the building as they should be recorded on the books of Sheffield Co. Assume that the land survey was for the building.
Problem 2: What is the Cost of the Land?
Problem 3: What is the cost of the building?
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