Gamma Corporation purchased land to be used as a factory site for $1,250,000. Gamma paid...
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Gamma Corporation purchased land to be used as a factory site for $1,250,000. Gamma paid $120,000 to tear down two buildings on the land. Salvage from the two demolished buildings was sold for $8,000. Legal fees of $5,220 were paid for title investigation and making the land purchase. Architect's fees were $46,800. Title insurance cost $3,600 and liability insurance during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. Landscaping cost $9,600. Interest costs during construction were $255,000. What is the historical cost of the land that should be recorded by Gamma? $1,370,820 $1,388,420 $1,412,080 $1,396,080
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