Answer:
c. $334,650.
Explanation:
The computation of the capitalized cost of the land is shown below:
= Purchase value of land for building + demolished value of old building + cost of title insurance + attorney fees + property taxes - scrap value from the building
= $320,000 + $12,000 + $900 + $500 + 2,750 - $1,500
= $334,650
The property taxes would be
= Property taxes paid - covered amount
= $3,000 - $250
= $2,750