Answer:
$638,000
Explanation:
The answer is simply the expenditure minus any selling from salvages.
First total Expenses(cost for land + cost for building) are as follow;
Land purchase: 64,000
Demolition: 6,000
Architect’s fees: 16,000
Legal fees for title investigation of land 4,000
Property taxes on land 3,400
Construction costs 540,000
Interest on construction loan 7,000.
.........................................................................
Total expenses = 64,000 +6,000+16,000+ 4,000+3,400+ 540,000 +7,000 = 640,400
Salvage sales = 2,400
Net Capital Cost = Total expenses - Salvage sales = $638,000
