On February 1, 2020, Sheridan Company purchased a parcel of land as a factory site for $324000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19300 Architect's fees 35700 Legal fees for title investigation and purchase contract 4100 Construction costs 1387000 (Salvaged materials resulting from demolition were sold for $10300.) Sheridan should record the cost of the land and new building, respectively, as $347400 and $1412400. $333000 and $1426800. $333000 and $1422700. $337100 and $1422700.

$337100 and $1422700.

Explanation:

According to the scenario, computation of the given data are as follows,

Cost of Land = Purchase of land + Demolition of old building + Legal fees - Salvage material

Cost of Land = $324,000 + $19,300 + $4,100 - $10,300

= $337,100

Now, Cost of Building = Architect's fees + Construction cost

Cost of Building = $35,700 + $1,387,000

= $1,422,700

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