Whelan Transfer manufactures conveyor belts. Early in August 2018, Whelan Transfer constructed its own building at a cost of $910,000 (for materials, labor, and overhead). Whelan Transfer paid cash for the construction costs. Whelan Transfer also paid $71,000 for architect fees and building permits.

Requirements

1. How much should Whelan Transfer record as the cost of the building in 2018?

2. Record Whelan Transfer’s transactions related to the construction of the building.