Reference no: EM132612795

Problem 1: On February 12, Lar Company purchased a tract of land as a factory site for P175,000. 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 Architect's fees 42,500 New building construction cost 875,000 The recorded cost of the completed factory building should be

Option A. 952,500

Option B. 917,500

Option C. 910,000

Option D. 930,000

Option E. Answer not given