Reference no: EM131820063

Question - On feb 12, Laker Company purchased a tract of land as factory site for $175,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows:

Cost of razing old building $35,000

Title insurance and legal fees to purchase land $ 12,500

Architects fees $42,500

New building cost $875,000

The recorded cost of the completed factory building should be

a) 910,000

b) 917,500

c) 930,000

d) 952, 500

Please show all work why the chosen answer is correct.