A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:
Purchase price of the land $ 400,000
Sale of salvaged parts already on land $ 20,000
Demolition of the old building $ 30,000
Ground-breaking ceremony (food and supplies) $ 1,500
Land preparation and leveling $ 7,500
What amount should be recorded for the purchase of the land?
A) $437,500.
B) $417,500.
C) $439,000.
D) $419,000.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.