Exercise 4 up to 3 points Ardvark Co. is building a new factory. Land was purchased for $500,000 as a factory site. The process of tearing down two buildings on the site need to be removed before beginning construction which is estimated to take 6 months. Demolish of the old building $60,000 and salvaged lumber and bricksold for $9,400. The title comapny received legal fees of $3,900 for title investigation and drafting the purchase contract. Ardvark paid $3,500 for a land survey and $56,000 for drawing the factory plans to an engineering firm. Title insurance on the land cost $5,900 and liability insurance of $1,400 for liability insurance. The building contractor received payments in two installments: $1,550,000 at the end of 3 months and $1,770,000 upon completion. Interest costs of $230,000 were incurred to finance the construction. Requirements Determine the cost of the land and the cost of the building as they should be recorded on the books of Ardvarkr Co. Assume that the land survey was for the building. Cost of land Cost of building Show your calculations in the work area to the right. Failure to show your work will result in no credit for this exercise.