The Chisholm Manufacturing Company purchased a plot of land for \(\$ 50.000\) as a plant site. There was a small office building on the plot, conservatively appraised at \(\$ 8.000\), which the company will continue to use with some modification and renovation. The company had plans drawn for a factory and received bids for its construction. It rejected all bids and decided to construct the plant itself. Below are listed additional items that management feels should be included in plant asset accounts.

Show in detail the items to be included in the following accounts: Land, Factory Building, Office Building. and Site Improvements. Explain why you excluded any items that you did not include in the four accounts.

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(1) Materials and supplies $250,000 (2) Excavation ...... 12,000 (3) Labor on construction. 138,000 (4) Cost of remodeling old building into office building 9,000 (5) Interest on money borrowed by Chisholm 5,000 (6) Interest on Chisholm's own money used 13,000 (7) Cash discounts on materials purchased 6,000 (8) Supervision by management.. 10,000 (9) Compensation insurance premiums 8,000 (10) Payment of claim for injuries not covered by insurance 3,000 (11) Clerical and other expenses of construction 8,000 (12) Paving of streets and sidewalks 4,000 (13) Architect's plans and specifications 3,000 (14) Legal costs of conveying land.. 2,000 (15) Legal costs of injury claim. (16) Income credited to Retained Earnings account, being the difference between the foregoing cost and the lowest contractor's bid .... 1,000 15,000