Kiev Corp. was incorporated on January 2, 2017, but was unable to begin manufacturing activities until July 1, 2017, because new factory facilities were not completed until that date. The Land and Building account at December 31, 2017, contained the following entries and balance:

The following additional information needs to be considered:
1. To acquire land and a building, the company paid $110,400 cash and 800 of its $5 cumulative preferred shares. The fair value of each share was estimated at $98 per share; however, Kiev's shares are not actively traded. The land and building were assessed by an independent, reliable valuator to have a combined fair value of $166,000.
2. The costs for removing the building amounted to $9,800, and the demolition company kept all the salvaged building materials.
3. Legal fees covered the following:

4. The insurance premium covered the building for a two-year term beginning May 1, 2017.
5. The special tax assessment by the municipality covered street improvements that are permanent in nature.
6. General expenses covered the following for the period from January 2, 2017, to June 30, 2017:

7. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the building's value by $43,800. It believed that such an increase was justified to reflect the current market at the time when the building was completed. Retained Earnings was credited for this amount.
8. The estimated life of the building structure is 50 years. The depreciation for 2017 on the building structure was 1% of the asset value (1% of $405,950, or $4,060). The estimated useful life of the building services (heating system, plumbing, air conditioning) is 20 years. No depreciation has been recorded on the building services. Kiev expects no residual value at the end of the useful life of these assets.
Instructions
Prepare the entries to reallocate the proper balances into the Land, Buildings, and Accumulated Depreciation accounts at December 31, 2017.

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2017 Jan. 31 Feb. 28 May 1 Land and building Cost of removal of building Partial payment of new construction Legal fees paid Second payment on new construction Insurance premium Special tax assessment General expenses Final payment on new construction Payment for HVAC (furnace, air conditioning system) Asset write-up to market value $166,000 9,800 60,000 3,770 40,000 2,280 4,000 36,300 10,000 30,000 43,800 405,950 4,060 $401,890 June1 30 July 1 Dec. 31 31 Depreciation for 2017 at 1% Account balance Land title search before purchase Legal work in connection with construction contract $1,300 2,470 $3,770 President's salary during construction Plant superintendent's wages covering supervision of new building $32,100 4,200 $36,300