Capital construction purchased a 3-acre tract of land for a building site for $350,000. the company demolished the old building at a cost of $12,000, but was able to sell scrap from the building for $1,500. the cost of title insurance was $900 and attorney fees for reviewing the contract was $500. property taxes paid were $3,000, of which $250 covered the period after the purchase date. the capitalized cost of the land is:
$364,650. Purchase price $350,000Demolition costs of old building 12,000 Less building scrap sold (1,500) Title insurance 900 Legal fees 500 Property taxes ($3,000 less taxes after the purchase date of $250) 2,750 Total cost of land $364,650
