Reference no: EM132755657
Bono Company recently incurred the following costs:
(1) Purchase price of land and dilapidated building $250,000
(2) Real estate broker's commission $14,000
(3) State Taxes for purchase of Land $7,000
(4) Net demolition costs of dilapidated building $44,000
(5) Excavation costs for new building $25,000
(6) Architect's fees and building permits $30,000
(7) Costs associated with new building construction $950,000
(8) Costs associated with new furniture and equipment $250,000
(9) Cost of security guards to protect finished building $120,000
(10) Cost of party to inaugurate the building $16,000
(11) Costs of walks, driveways, and parking lot $55,000
Problem 1: The building should be recorded on Bono's books at
Option 1: None of the above.
Option 2: $1,060,000.
Option 3: $1,125,000.
Option 4: $1.041.000.
Option 5: $1,192.000.
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