The Venus Company hired an architect to design plans and a construction firm to build a new office building on a parcel of land it owns. The following data relates to the building:
|
Price paid to the construction firm |
$320,000 |
|
Architect fees |
18,000 |
|
Permit fees |
1,200 |
|
Property taxes during the construction period |
800 |
|
Insurance premium for first year of operations |
3.000 |
|
Property taxes during the first year of operations |
6.000 |
The total acquisition cost of the new building is:
- $349,000.
- $340,000.
- $338,000.
- $320,000.