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Question 1: On February 12, Laker Company purchased a tract of land as a factory site for $175,000. An existing building on the property was razed and construction began on a new factory building in March of the same year. Additional data are as follows:
Problem 1: What will be the recorded cost of the completed factory building?
A. $930,000 B. $952,500 C. $917,500 D. $910,000
Cost of razing old building 5 35,000
Title insurance and legal fees to purchase land 12,000 Architect's fees 42, 500
New building construction cost $75,000
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