Consider the following information relating to the construction and subsequent use of a new corporate headquarters building. Construction costs $950,000 Overhead incurred during construction $45,000 Excavation costs $79,000 Removal of existing building, previously used $110,000 The building was completed and ready for use on September 1; during the three months subsequent to that date, $15,000 was paid as salaries to building staff. The cost of the new building for accounting purposes is

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