Glesen Corp. purchased land with two old buildings on it as a factory site for $470,000.?

The property tax assessment on this property was $350,000: $250,000 for the land and the rest for the buildings. It took six months to tear down the old buildings and construct the factory.





The company paid $43,000 to raze the old buildings and sold salvaged lumber and brick for $6,300. Legal fees of $1,850 were paid for title investigation and drawing up the purchase contract. Payment to an engineering firm was made for a land survey, $2,200, and for drawing the factory plans, $90,000. The land survey had to be made before final plans could be drawn. The liability insurance premium that was paid during construction was $900. The contractor's charge for construction was $2,740,000. The company paid the contractor in two instalments: $1.2 at the end of three months and $1,540,000 upon completion. Interest costs of $170,000 were incurred to finance the construction.


Determine the land and building costs as they should be recorded on the books of Glesen Corp. Assume that the land survey was for the building.

Glesen Corp. purchased land with two old buildings on it as a factory site for $470,000.?
TOO MUCH