What amount should rose fuel record for the cost of the land

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Reference no: EM133009974

Rose Fuel Company purchased land for $200,000.
Demolition of the existing building on the land totaled $60,000.
Rose Fuel sold salvage materials from the building site for $20,000.
A few months later Rose Fuel built a production building on the
land at a cost of $1,200,000 including site preparation costs of $80,000.
Rose Fuel also installed a fence for $10,000 and paved a parking lot for $30,000.

Problem A. What amount should Rose Fuel record for the cost of the land?

Problem B. What amount should Rose Fuel record for the cost of the building?

Reference no: EM133009974

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