Cost of self-constructed assets. Assume that Bolton Company purchased a plot of land for $\$ 90,000$ as a factory site. A small office building sits on the plot, conservatively appraised at $\$ 20,000$. The company plans to use the office building after making some modifications and renovations. The company had plans drawn for a factory and received bids for its construction. It rejected all bids and decided to construct the factory itself. Management believes that plant asset accounts should include the following additional items:

Show in detail the items Bolton should include in the following accounts: Land, Factory Building, Office Building, and Site Improvements. Explain the reason for excluding any of these items from the four accounts.

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(1) Materials and Supplies $200,000 (2) Excavation .... 12,000 (3) Labor on Construction 140,000 (4) Cost of Remodeling Old Building into Office Building. 13,000 (5) Interest Paid on Cash Borrowed by Bolton 6,000 (6) Interest Forgone on Bolton's Own Cash Used 9,000 (7) Cash Discounts on Materials Purchased 7,000 (8) Supervision by Management .. 10,000 (9) Workers' Compensation Insurance Premiums 8,000 (10) Payment of Claims for Injuries Not Covered by Insurance 3,000 (11) Clerical and Other Expenses of Construction 8,000 (12) Paving of Streets and Sidewalks.... 5,000 (13) Architect's Plans and Specifications 4,000 (14) Legal Costs of Conveying Land 2,000 (15) Legal Costs of Injury Claim ... 1,000 (16) Income Credited to Retained Earnings Account (the difference between the Forgone cost and the lowest contractor's bid) ... 11,000