Question

On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2016. Costs incurred during this period are

Answer 1

Answer:

some parts of the question are missing:

Costs incurred during this period are: Demolition of old building $10,000 Architect's fees $20,000 Legal fees for title investigation and purchase contract $4,000 Construction costs $625,000 Edwards sold salvaged materials resulting from the demolition for $2,000

the purchase cost of the land = $100,000 (purchase price) + $10,000 (demolition of old building) + $4,000 (legal fees) - $2,000 (sales of salvaged materials) = $112,000

the cost of the building = $625,000 (construction costs) + $20,000 (architect's fees) = $645,000