In an effort to enable growth within the company, CIC is FRQVLGHULQJ purchase of a building and the land on which it is located. They believe they've found the ideal property and have negotiated a purchase price of $625,000. The land has been appraised at $306,000 and building at $374,000. If CIC makes this purchase, some substantial remodel work will need to be done to the building. They've selected a potential contractor and negotiated a price of $95,000 for labor and materials. CIC estimates that the building will have an estimated useful life of 30 years with a $50,000 salvage value. Once the remodeling is complete, CIC will also purchase and install a freezer that has a list price of $3,700. The supplier offers a 3 percent discount if CIC pays cash (which it plans to do). Delivery terms were FOB shipping point and freight costs will be $450. The freezer will require special installation which will cost $250. CIC estimates the freezer will have an estimated useful life of 7 years and a salvage value of $300. Opening this location will mean that CIC will likely generate additional wages and other operating expenses of $52,000 per year. Before completing