During the current year, Alanna Co. had the following transactions pertaining to its new office building.

A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost.
B. What should Alanna Co. record on its books for the building?

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Purchase price of land Legal fees for contracts to purchase land Architect fees Demolition of the old building on site Sale of scrap from old building Construction cost of new building $120,000 4,000 16,000 10,000 6,000 700,000