Sheridan Company purchased land as a factory site for $1350000. Sheridan paid $114000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5060 were paid for title investigation and making the purchase. Architect's fees were $47000. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15060. The contractor was paid $4500000. An assessment made by the city for pavement was $9800. Interest costs during construction were $257000. The cost of the land that should be recorded by Sheridan Company is

Respuesta :

Answer: $‭1,482,360‬

Explanation:

The cost of the land will be all the costs that were incurred to get it ready for use.

= Purchase price + cost of tearing down two buildings + legal fees + Title insurance + Assessment Cost  - Salvage

= 1,350,000 + 114,000 + 5,060 + 3,500 + 9,800 - 8,100

= $‭1,482,360‬