Question - February 1, 2016, Alpha Company purchased land for the future factory location at a cost of $50,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2016. Costs incurred during this period were:
|
Item
|
Amount
|
|
Demolition dilapidated building
|
$3,500
|
|
Architect Fees
|
$11,250
|
|
Legal Fees - for title search
|
$3,000
|
|
Interest During Active Construction Period
|
$16,750
|
|
Construction Costs
|
$515,000
|
Using this information, how much should be recorded as the cost of (Enter only whole dollar values.)
1. Land
2. New Building