On February 1, 2010, Edwards Corporation purchased a parcel of land as a factory site for $50,000…

 
   

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On February 1, 2010, Edwards Corporation purchased a parcel of land as a factory site for $50,000. It demolished an old building on the property, and began construction on a new building that was completed on October 2, 2010. Costs incurred during this period are:Demolition of old building ……………….. $ 4,000Architect’s fees ………………….. 20,000Legal fees for title investigation and purchase contract ……… 2,000Construction costs ………………….. 500,000The company sold salvaged materials resulting from the demolition for $3,000.RequiredAt what amount should Edwards record the cost of the land and the new building, respectively?View Solution:
On February 1 2010 Edwards Corporation purchased a parcel of