A company purchased a $500,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds as follows:
Demolition of existing building on site $ 75,000
Legal and other fees to close escrow 15,000
Proceeds from sale of demolition scrap 10,000
What would be the capitalized cost of the land?
A) $500,000.
B) $575,000.
C) $580,000.
D) $590,000.
Answer: C
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