The following additional information is to be considered. 1. To acquire land and building, the company paid $82,500 cash and 800 shares of its 8% cumulative preferred stock, par value $100 per share. Fair value of the stock is $126 per share. 2. Cost of removal of old buildings amounted to $9,964, and the demolition company retained all materials of the building. 3. Legal fees covered the following. Cost of organization Examination of title covering purchase of land Legal work in connection with construction contract $650 1,640 2,200 S 4 , 490 4. Insurance premium covered the building for a 2-year term beginning May 1, 2021. 5. The special tax assessment covered street improvements that are permanent in nature. 6. General expenses covered the following for the period from January 2, 2021, to June 30, 2021. President's salary Plant superintendent's salary-supervision of new building $34,412 4,001 $38,413 7. 8. Because of a general increase in construction costs after entering into the building contract, the board of directors increased the value of the building $56,442, believing that such an increase was justified to reflect the current market at the time the building was completed. Retained earnings was credited for this amount. Estimated life of building-SD years. Depreciation for 2021-1% of asset value (1% of $377,300, or $3,773).