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Costs associated with land and construction of new building

Could use some help on the following accounting questions:

Poin Company recently incurred the following costs:
1. Purchase price of land and dilapidated building 280,000
2. Real estate broker's commission 14,000
3. Net demolition costs of dilapidated building 42,000
4. Excavation costs for new building 44,000
5. Architect's fees and building permits 35,000
6. Costs associated with new building construction 930,000
7. Costs associated with new furniture and equipment 250,000
8. Actual interest costs during building construction 135,000
9. Actual interest cost after completion of bldg const120,000
10.Costs of walks, driveways, and parking lot 55,000

1. The building should be recorded on Poin's books at
a. $1,144,000
b. $1.319,000
c. $ 930,000
d. $1,264,000

2. Land should be recorded on Poin's books at
a. $280,000
b. $336,000
c. $322,000
d. $380,000

Solution Preview

1. Building should be recorded at all the costs incurred in constructing the building.
(4) Excavation costs for new building 44,000
(5) Architect's fees and building permits 35,000
(6) ...

Solution Summary

The solution explains the cost basis for land and building.

$2.19