Determine cost to capitalize for land, land improvements, equipment, buildings, and construction in process Prevale, Inc. purchased land in 2019. An existing structure was demolished, and a new warehouse was constructed on the property in September of 2019. Prevale hired construction workers at a rate of $25 per hour to do the work (1,680 hours in total). Prevales operations manager spent 25% of his time in September supervising the construction. Warehouse Construction Cost Data Purchase price --Land $125,000 Cost to remove structure on land $10,000 Operation manager's monthly 5,000 Proceeds from sale of metal from demolished structure 3,000 Paving of parking lot 10,000 Landscaping costs 12,000 Foundation work 15,000 Direct materials --Warehouse 105,000