Carlos Company bought a land, on which there was an old building, for $900,000. They immediately had the old building removed at a net cost of $30,000. Attorneys were paid $7,000 in connection with the land purchased and an additional $3,000 in connection with permits necessary for the construction of Carlos' new office building. $25,000 was paid for excavation for the basement of the new building. $2,100,000 was paid for construction of the new building. The Cost of the Land will be recorded as: O $907,000 $937,000 O $941,200 O $935,800 $960,800

Carlos Company bought a land, on which there was an old building, for $900,000. They immediately had the old building removed at a net cost of $30,000. Attorneys were paid $7,000 in connection with the land purchased and an additional $3,000 in connection with permits necessary for the construction of Carlos' new office building. $25,000 was paid for excavation for the basement of the new building. $2,100,000 was paid for construction of the new building. The Cost of the Land will be recorded as: O $907,000 $937,000 O $941,200 O $935,800 $960,800

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 42P

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