Use the Following Information for Questions

question 99

Multiple Choice

Use the following information for questions
Seiler Co.purchased land as a factory site for $600,000.Seiler paid $60,000 to tear down two buildings on the land.Salvage was sold for $5,400.Legal fees of $3,480 were paid for title investigation and making the purchase.Architect's fees were $31,200.Title insurance cost $2,400, and liability insurance during construction cost $2,600.Excavation cost $10,440.The contractor was paid $2,200,000.An assessment made by the city for pavement was $6,400.Interest costs during construction were $170,000.
-The cost of the land that should be recorded by Seiler Co.is

• A)$660,480.
• B)$666,880.
• C)$669,880.
• D)$676,280.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and decreases when consumer income falls.

Consumer Incomes

The total earnings of individuals, affecting their purchasing power and demand for goods and services in the economy.

Bicycles

A human-powered, pedal-driven vehicle with two wheels attached to a frame, one behind the other.

Complementary Goods

Products or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.