On February 1, 2020, Sunland Company purchased a parcel of land as a factory site for $313000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19600 Architect's fees 33700 Legal fees for title investigation and purchase contract 5700 Construction costs 1388000 (Salvaged materials resulting from demolition were sold for $10600.) Sunland should record the cost of the land and new building, respectively, as O $322000 and $1427400. $322000 and $1421700. O $338300 and $1411100. O $327700 and $1421700.

On February 1, 2020, Sunland Company purchased a parcel of land as a factory site for $313000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19600 Architect's fees 33700 Legal fees for title investigation and purchase contract 5700 Construction costs 1388000 (Salvaged materials resulting from demolition were sold for $10600.) Sunland should record the cost of the land and new building, respectively, as O $322000 and $1427400. $322000 and $1421700. O $338300 and $1411100. O $327700 and $1421700.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 7P: Calculate the following: The first year of depreciation on a residential rental building costing...

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