Farrey Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery:

Instructions
(a) Determine the amounts that should be included in the cost of land, buildings, and machinery. Indicate how any amounts that are not included in these accounts should be recorded.

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Legal fees for title search Architect's fees Cash paid for land and dilapidated building on it Removal of old building $ 520 2,800 112,000 $20,000 5,500 Less: Salvage Surveying before construction Interest on short-term loans during construction Excavation before construction for basement Machinery purchased (subject to 2% cash discount, which was not taken) Freight on machinery purchased Storage charges on machinery, made necessary because building was still under 14,500 370 7,400 19,000 65,000 1,340 2,180 construction when machinery was delivered New building constructed (building construction took six months from date of purchase of land and old building) Assessment by city for drainage project Hauling charges for delivery of machinery from storage to new building Installation of machinery Trees, shrubs, and other landscaping after completion of building 485,000 1,600 620 2,000 (permanent in nature) Municipal grant to promote locating building in the municipality 5,400 (8,000)