Oak Co., a newly formed corporation, incurred the following expenditures related to land and building: | |
|---|
| County assessment for sewer lines | $ 2,500 | | Title search fees | 625 | | Cash paid for land with a building to be demolished | 135,000 | | Excavation for construction of basement | 21,000 | | Removal of old building $21,000 less salvage of $5,000 | 16,000 |
At what amount should Oak record the land?
|
a. | $154,125 | |
b. | $175,625 | |
c. | $153,500 | |
d. | $138,125 |
|
