Answer: $350,000
Explanation:
When recording the cost of a fixed asset, all the costs that were incurred to acquire the asset and make it ready for production should be included.
In this case those costs include the actual purchase price, the closing costs and the renovations.
Total building cost is therefore:
= Purchase price + Closing costs + Cost to prepare building
= 300,000 + 30,000 + 20,000
= $350,000
