ACTIVITY 1 On March 1, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15. Costs incurred during this period are listed below:

Demolition of old building $4,000

Architects fees for new building $12,000

Legal fees for title investigation of land $ 2,000

Current property taxes $ 3,000

Construction costs $500,000

Interest on construction loan $5,000

Salvaged material resulting from the demolition of the old building were sold for $2,000.

Required: Determine the amount that Beldon should capitalize as the cost of the land and the new building.