1. Cost of Capital Asset On March 1, ABC Holdings purchased land and three buildings for $1,200,000. The plan was to use "Building 1" as an office and to demolish "Building 2" and "Building 3" to make room for a parking lot. An appraisal established the following values: Land Building 1 Building 2 Building 3 $750,000 250,000 0 0 In addition to the purchase of the land and buildings, ABC paid to have the following done: Clean-up & level land to prepare land for use Renovation on Building 1 Demolish old building Construct parking lot $ 20,000 5,000 12,000 5,000 Also, ABC received $2,000 cash for salvage of fixtures from "Building 2". Prepare the journal entries for the purchase and the work done, assuming everything was completed on March 1.