Use the Following Information for Questions

question 46

Multiple Choice

Use the following information for questions.
La Bianco Company purchased land for a manufacturing facility for €1,100,000.The company paid €70,000 to tear down a building on the land.Salvage was sold for €10,500.Legal fees of €6,500 were paid for title investigation and making the purchase.Architect's fees were €40,500.Title insurance cost €4,500, and liability insurance during construction cost €13,500.Excavation cost €12,000.The contractor was paid €1,357,000.A one -time assessment made by the city for sidewalks was €7,500.La Bianca installed lighting and signage at a cost of €11,000.
-The cost of the building that should be recorded by La Bianca is

• A)€1,505,500.
• B)€1,432,000.
• C)€1,423,000.
• D)€1,357,500.

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Definitions:

Charity

An organization set up to provide help and raise money for those in need, often operating on a non-profit basis.

Feel Richer

The sensation or perception of having more purchasing power or wealth, regardless of actual financial status.

Rent Controls

Government-imposed limits on the amount landlords can charge tenants for leasing properties, intended to keep housing affordable.

Price Ceilings

Government-imposed limits on how high a price can be charged for a good or service.