Cala Manufacturing purchases land for $$390,000$ as part of its plans to build a new plant. The company pays $$33,500$ to tear down an old building on the lot and $$47,000$ to fill and level the lot. It also pays construction costs of $$1,452,200$ for the new building and $$87,800$ for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Exercise $10-2$

Recording costs of assets C$1$