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On February 1, 2020, Crane Company purchased a parcel of land as a factory site...

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Accounting

On February 1, 2020, Crane Company purchased a parcel of land as a factory site for $318000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below:

Demolition of old building $ 21000
Architect's fees 36000
Legal fees for title investigation and purchase contract 5300
Construction costs 1392000
(Salvaged materials resulting from demolition were sold for $10800.)

Crane should record the cost of the land and new building, respectively, as

$328200 and $1433300.

$328200 and $1428000.

$344300 and $1417200.

$333500 and $1428000.

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