Acquisition of Land and Building On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $120,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2016. Costs incurred during this period ane Demolition of old building Architect's fees Legal fees for title investigation and purchase contract 5,000 Construction costs Edwards sold salvaged materials resulting from the demolition for $2,000 Required 8,000 20,000 625,000 1. At what amount should Edwards record the cost of the land and the new building, respectively? If an input box should be blank, enter a zero. Land Building Purchase price of land Demolition of old building Architect's fees Legal fees Construction costs Salvaged materials Total 2If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect on the financial statements