Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 191,000 Real estate commissions 16,600 Legal fees 2,400 Expenses of clearing the land 3,600 Expenses to remove old building 2,600 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building

Cost of the land = $216,200

Cost of the new building = $0

Explanation:

          Computing table for cost of land:      

Particular                                            Amount

Purchase price of land                $191,000

Real estate commissions pay            $16,600

Legal fees pay                               $2,400

Expenses of clearing the land       $3,600

Expenses to remove old building      $2,600

Cost of the land                             $216,200

NOTE: There is no information provided for cost of the new building.

So, Cost of the new building = $0

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck