$ 112,000 E10.4 (LO 2, 3, 7) (Treatment of Various Costs) Farrey Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery: Legal fees for title search 520 Property tax in arrears at property purchase date 4,500 Architect's fees 2,800 Cash paid for land and dilapidated building on it Removal of old building $20,000 Less: Salvage _5.500 14,500 Surveying before construction 370 Interest on short-term loans during construction 7,400 Excavation before construction for basement and foundation 19,000 Machinery purchased (subject to 2% cash discount, which was not taken) 65,000 Freight on machinery purchased 1,340 Exchange on foreign currency purchase of machinery Storage charges on machinery, made necessary because building was still under construction when machinery was delivered 2,180 New building constructed (building construction took six months from date of purchase of land and old building) 485.000 Assessment by city for drainage project 1,600 Fence surrounding the property for security 15,000 Hauling charges for delivery of machinery from storage to new building 620 Installation of machinery Customs duty on importing machinery 5.400 Municipal grant to promote locating building in the municipality (8,000) 1,200 2,000 Instructions a. Determine the amounts that should be included in the cost of land, buildings, and machinery. Indicate how any amounts that are not included in these accounts should be recorded