Chapter 7 Homework Submit your answers in CANVAS before it is due Use the following to answer questions 1-4 The company purchased land as a factory site. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed below: Land purchased as a factory site $700,000 Property taxes on land (past due for last year) 8,000 Property taxes on land (for the next year) 11,000 Title investigation of land 2,800 Architect fees (for new building) 16,000 Demolition of old building Sale of salvaged materials Building construction costs Interest cost related to the construction 21,000 3,000 1,250,000 60,000 1. $ account? How much of the "property taxes on the land for the next year" should be capitalized to the Land 2. How should the "sale of salvaged materials" be recorded? 3. $ A. As an added cost of the land B. As a reduction of the cost of the land C. As an added cost to the building D. As a reduction of the cost of the building What amount should be recorded to the Land account? 4. $ What amount should be recorded to the Building account?