-_1200_1&co QUESTION 16 d e_89094_1&content id=_2366226_18stepanull Samtech Manufacturing purchased land and a building for $4 million. In addition to the purchase price. Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance Legal fees for drawing the contract Property taxes State transfer fees $16,000 5,000 36,000 4,000 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.3 and $1.1 million, respectively. Property taxes included $6,000 of delinquent taxes. Question Assume that immediately after acquisition, Samtech demolished the building. Demolition costs were $250,000 and the salvaged materials were sold for $10,000. In addition, Samtech spent $86,000 clearing and grading the land in preparation for the construction of a new building. Journal entries would include: a debit to Land for $4,365,000 a debt to Land for $3,023,250 a debit to Land for $4,357,000 a debit to Land for $3,267.750