Seiler Co. purchased land as a factory site for $600,000. Seiler paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost for the new building $10,440. The contractor was paid $2,200,000. Delinquent real estate taxes on property assumed by purchaser was $6,400. Interest costs during construction were $170,000. The cost of the land that should be recorded by Seiler Co. is: Group of answer choices $660,480. $666,880. $669,880. $676,280.

Seiler Co. purchased land as a factory site for $600,000. Seiler paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost for the new building $10,440. The contractor was paid $2,200,000. Delinquent real estate taxes on property assumed by purchaser was $6,400. Interest costs during construction were $170,000. The cost of the land that should be recorded by Seiler Co. is: Group of answer choices $660,480. $666,880. $669,880. $676,280.

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 45P

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