Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) related to the construction of a new home office for Secrest Investment Company.

Cost of land site, which included an abandoned railroad spur - $195,000

Legal fees, including title search, relating to land purchase - 6,300

Cost of surveying land to confirm boundaries - 1,300

Cost of removing railroad tracks - 9,500

Payment of delinquent property taxes assumed by the purchaser - 8,000

Proceeds from sale of timber from walnut trees cut down to prepare site for construction - (22,000)

Proceeds from sale of salvaged railroad track - (5,500)

Grading to prepare land site for construction - 6,000

Cost of basement excavation (contracted separately) - 5,700

Architect's fees on new building - 130,000

Payment to building contractor-original contract price - 3,400,000

Cost of changes during construction to make building more energy efficient - 93,000

Cost of replacing windows broken by vandals - 2,600

Cost of paving driveway and parking lot - 19,000

Out-of-court settlement for mud slide onto adjacent property - 12,000

Special assessment for paving city sidewalks (paid to city) - 24,000

Cost of brick and wrought iron fence installed across front of property - 16,500

Land = ? Land Improvements = ? Building = 3500