Use the Following Information to Solve the Following Questions

question 84

Multiple Choice

Use the following information to solve the following questions:
Morocco Corp. purchased land as a factory site for $ 250,000. They paid $ 10,000 to tear down two buildings on the land, and the salvage from these old buildings was sold for $ 1,350. Legal fees of $ 870 were paid for title investigation and making the purchase. Architect's fees were $ 10,300. Title insurance cost $ 600, and liability insurance during construction cost $ 650. Excavation costs were $ 2,610. A contractor was paid $ 600,000 to construct the new building. An assessment made by the city for pavement was $ 1,600. Interest costs during construction were $ 42,500.
-The cost of the building should be recorded at

• A) $ 656,060.
• B) $ 655,800.
• C) $ 653,710.
• D) $ 653,450.

---

Definitions:

Interest Rate

The part of a loan that incurs interest fees for the borrower, often shown as an annual percentage rate of the total amount borrowed.

Garden Gnomes

Decorative statues that represent humanoid figures, often placed in gardens or outdoor areas for ornamentation.

Long-Run Equilibrium

A state in which all factors of production and outputs are fully adjusted to each other, and all economic forces are in balance, with no surplus or shortage.

Plaster

A mixture of lime or gypsum with sand and water that hardens when dried, used for coating walls and ceilings.