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Free InquiryPine Co. purchased land for $450,000 as a factory site. An existing building on the site was razed before construction began. Additional information is as follows:
Cost of razing old building $60,000
Title insurance and legal fees to purchase land $30,000
Architect’s fees $95,000
New building construction cost $1,850,000
What amount should Pine capitalize as the cost of the completed factory building?
A.$2,005,000
B.$1,975,000
C.$1,945,000
D.$1,910,000
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