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Question - Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:
Sale price of the land $400,000
Sale of salvaged parts already on land $20,000
Demolition of the old building $30,000
Ground breaking ceremony (food and supplies) $1,500
Land preparation and leveling $7,500
Required - What amount should be recorded for the purchase of the land?
a. $419,000.
b. $439,000.
c. $437,500.
d. $417,500.
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