Blaylock Inc. purchased 15 acres of land for $300,000 in cash. They plan to construct a new warehouse on the site. The land had an old building on it at the time of purchase that was immediately demolished on the purchase date at a cost of $9,000. Blaylock sold the salvaged material from the old building for $5,000 in cash.

Blaylock also incurred the following costs related to the land:

• Commissions paid, $8,000
• Title insurance, $3,000
• Land survey, $1,000
• Grading of the land, $7,000

What should be the capitalized cost of the land?

1. $323,000
2. $328,000
3. $333,000
4. $314,000
5. $319,000
6. none of the above