Cotton & Company bought real estate, on which there was an old office building, for $510,000. It paid $50,000 in cash as a down payment and signed a 10% mortgage for the remainder. It immediately had the old building razed at a net cost of $55,000. Attorneys were paid $6,000 in connection with the land purchase and an additional $5,000 in connection with permits and zoning variances necessary for Cotton's new office building. $25,000 was paid for excavation for the basement of the new building, $1,500,000 was paid for construction of the new building, and $75,000 was paid for a parking lot and necessary walkways and driveways. The new office building should be recorded at 1,558,000 1,605,000 1,500,000 O 1,530,000