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Nyguen Company bought real estate, on which there was an old office building, for $900,000. They paid $90,000 in cash as a down payment and signed a...

Nyguen Company bought real estate, on which there was an old office building, for $900,000. They paid $90,000 in cash as a down payment and signed a 6% mortgage for the remainder. They immediately had the old building razed at a net cost of $30,000, the salvaged materials were sold for $4,200. Attorneys were paid $7,000 in connection with the land purchase and an additional $3,000 in connection with permits and zoning variances necessary for Nyguen's new office building. $25,000 was paid for excavation for the basement of the new building. $2,100,000 was paid for construction of the new building, and $95,000 was paid for a parking lot and necessary walkways and driveways.

The new office building should be recorded at:
a. $2,100,000.
b. $2,128,000.
c. $2,125,000.
d. $2,100,000.
Land should be recorded at a cost of:
a. $932,800.
b. $937,000.
c. $935.800.
d. $960,800.

This question was asked on Mar 17, 2010.

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