Record the cost of the land and new building


On January 15, 2013, Talbot Corporation purchased a parcel of land as a factory site for $425,000. An old building on the property was demolished, and construction began on a new building which was completed on November 31, 2013. Salvaged materials resulting from the demolition were sold for $12,000. Costs incurred during this period included: Demolition of old building, $35,000, Architect's fees, $15,000, Legal fees for title investigation and purchase contract, $7,000, and Construction costs, $980,000. Talbot should record the cost of the land and new building, respectively, as

$425,000 and $980,000

$455,000 and $995,000

$460,000 and $995,000

$460,000 and $983,000

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Accounting Basics: Record the cost of the land and new building
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