Use the Following Information for Questions

question 41

Multiple Choice

Use the following information for questions
Parry Co.purchased land as a factory site for $500,000.Parry paid $20,000 to tear down two buildings on the land.Salvage was sold for $2,700.Legal fees of $1,740 were paid for title investigation and making the purchase.Architect's fees were $20,600.Title insurance cost
$1,200, and liability insurance during construction cost $1,300.Excavation cost $5,220.The contractor was paid $1,200,000.An assessment made by the city for pavement was $3,200.Interest costs during construction were $85,000.
-The cost of the building that should be recorded by Parry Co.is

• A)$1,306,900.
• B)$1,307,420.
• C)$1,311,600.
• D)$1,312,120.

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Definitions:

Subduction

The mechanism in which one tectonic plate slides beneath another, descending into the mantle where the plates come together.

Bering Sea

A marginal sea of the Pacific Ocean located off the northern coasts of Russia and Alaska, known for its diverse marine life and climatic conditions.

Philippine Sea

A marginal sea of the Western Pacific Ocean east of the Philippine archipelago, noted for its biodiversity.

Ice Age

A period of time in which large regions of land are covered year-round with ice and snow, especially in the last 2 million years.