Question

Waterway Industries purchased land as a factory site for $1335000. Waterway paid $120000 to tear down two buildings on the land. Salvage was sold for $8300. Legal fees of $5220 were paid for title investigation and making the purchase. Architect's fees were $46000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15280. The contractor was paid $4500000. An assessment made by the city for pavement was $9700. Interest costs during construction were $258000. The cost of the land that should be recorded by Waterway Industries is $1479620. $1465520. $1469920. $1455820.

Answer 1

$1,465,520

Step-by-step explanation:

Calculation of cost of the land that should be recorded by Water ways industries

Cost of land = Purchase price + demolition of building - sales of salvage + legal fees + Title insurance cost + Payment assessment

Cost of land = $1,335,000 + $120,000 - $8,300 + $5,220 + $3,900 + $9,700

Cost of land = $1,465,520