Capitalization Question 6 of 6 Your answer is partially correct. 19.8/33 E Metlock Landscaping began construction of a new plant on December 1, 2025. On this date, the company purchased a parcel of land for $197,000 in cash. In addition, it paid $2,800 in surveying costs and $5,600 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $4,200, with $1,400 being received from the sale of materials. Architectural plans were also formalized on December 1, 2025, when the architect was paid $42,000. The necessary building permits costing $4,200 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2026 as follows. Date of Payment Amount of Payment March 11 May 1 July 1 $336,000 462.000 84,000 The building was completed on July 1. 2026. To finance construction of this plant, Metlock borrowed $840,000 from the bank on December 1, 2025. Metlock had no other borrowings. The $840,000 was a 10-year loan bearing interest at 10%. July 1 84,000 The building was completed on July 1, 2026. To finance construction of this plant, Metlock borrowed $840,000 from the bank on December 1, 2025. Metlock had no other borrowings. The $840,000 was a 10-year loan bearing interest at 10%. Compute the balance in each of the following accounts at December 31, 2025, and December 31, 2026. a. Land December 31, 2025 208200 December 31, 2026 208200 b. Building 48320 993772 C Interest expense 4880 52274 eTextbook and Media