Interest costs during construction based problem


S. 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.

What is the cost of the land that should be recorded by S Co. ?

What is the cost of the building that should be recorded by S. Co. ?

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Accounting Basics: Interest costs during construction based problem
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