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.
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
$4,500
Architect Fees
$9,750
Legal Fees – for title search
$2,500
Interest During Active Construction Period
$17,500
Construction Costs
$510,000
Using this information, how much should be recorded as the cost of: (Enter only whole dollar values.)
1. Land
2. New Building
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