Reference no: EM132785528

The following expenditures were incurred by John Legend Company in 2020.

Cost of land, 4.500.000

Expenses of land survey, 30,000

Expenses for search of land title, 6,000

Building permit fee, 10,000

Temporary building to house materials and construction workers, 50,000

Demolition of old building, 40,000

Payments to tenants to vacate old building, 60,000

Payments to construction workers for injuries sustained, 85,000

Interest on temporary loan for construction, 90,000

Cost of paving parking area adjoining building, 45,000

Excavation expenses for foundation of building, 150,000

Cost of construction, 9,800,000

Problem 1: Using the interpretations of the PIC, what is the cost of land?

Group of answer choices

Option 1: 4,461,000

Option 2: 4,536,000

Option 3: 4,596,000

Option 4: 4,636,000