Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvag from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest cos during construction were $43300. The cost of the land should be recorded at O $292330. O $294770. O $296510. O $294070.

Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvag from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest cos during construction were $43300. The cost of the land should be recorded at O $292330. O $294770. O $296510. O $294070.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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