Reference no: EM132718324
On January 6, Year 1, Lu Corporation purchased a tract of land for a factory site for $1,500,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1.
Additional cost data are shown below:
Construction cost of new building $ 1,760,000
Real estate and attorney fees 15,400
Architect fees 138,000
Cost to demolish old building 133,200
Salvage recovery from old building (11,000)
Problem 1: Which of the following are the capitalized costs of the land and the new building, respectively?
A. $1,637,600 and $1,898,000.
B. $1,515,400 and $2,020,200.
C. $1,648,600 and $1,887,000.
D. $1,500,000 and $2,035,600.
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