Determine acquisition costs to capitalize and expense.

James Co. incurred the following costs to open a new manufacturing facility for its new product line during 2018. Determine the amount to be capitalized for land, land improvements, building, and equipment and what amount should be expensed.

1/31/18Land and dilapidated building$800,000

2/28/18Cost of demolition and removing building 40,000

2/28/18Proceeds from sale of salvaged materials resulting from demolition of dilapidated building(5,000)

4/1/18Legal fees for land and building purchase contract and to record ownership15,000

4/1/18Grading of land 30,000

5/1/18Partial payment of new building construction (start of construction)2,500,000

6/1/18Down payment on equipment for new production line70,000

6/15/18Salary of company president during construction250,000

7/1/18Final payment on equipment for new product line525,000

7/1/18Freight charges and sales tax on equipment15,000

9/1/18Parking lot paving 80,000

9/1/18Installation of fencing30,000

10/1/18Final payment on building construction (at time of building completion)1,000,000

10/1/18Interest incurred during building construction55,000

11/1/18Storage costs caused by early delivery of equipment10,000

12/31/18Payment for installation of equipment (equipment installation complete and equipment ready for use) 80,000

Asset account

Amount to Capitalize

Land

Land Improvements

Building

Equipment

Amount to Expense: ___