Skyline Corporation has decided to expand its operations and has purchased land in Salina for construction of a new manufacturing plant. The following costs were incurred in purchasing the property and constructing the building:
Land purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000
Payment of delinquent property taxes . . . . . . . . . . . . . . . . . . . . . 22,000
Title search and insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000
City improvements for water and sewer . . . . . . . . . . . . . . . . . . . . 19,500
Building permit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,000
Cost to destroy existing building on land ($5,000 worth of salvaged material
used in new building) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
Contract cost of new building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
Land improvements—landscaping . . . . . . . . . . . . . . . . . . . . . . . . . 76,000
Sidewalks and parking lot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000
Fire insurance on building—1 year . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
The depreciated value of the old building on the books of the company from which the land was purchased was $29,000. The old building was never used by Skyline.

Instructions:
1. Determine the costs of the land and land improvements. Show clearly the elements included in the totals.
2. Determine the cost of the new building. Show clearly the elements included in the total.