For the year ended December 31, 2021, Sandhill Ltd. had the following transactions related to the purchase of property. Assume all transactions are for cash unless otherwise stated. Feb. 7 Purchased real estate for $1.2 million, paying $294,800 cash and signing a mortgage payable for the balance. The site had an old building on it and the fair values of the land and building were $1.0 million and $91,100, respectively. The old building will be demolished and a new apartment building will be constructed on the site. 9 Paid legal fees of $21,130 on the real estate purchase of February 7. 15 Paid $60,540 to demolish the old building and make the land ready for the construction of the apartment building. 16 Received $16,770 from the sale of material from the demolished building. 28 Paid $4,000 to grade the land in preparation for the construction of the apartment building. Mar. 2 Paid architect fees of $77,670 to design the apartment building. July 2 The full cost for construction of the apartment building was $2.5 million. Paid $745,000 cash and signed a bank loan payable for the balance. 3 Purchased a one-year insurance policy on the finished building for $10,010. Aug. 29 Paid $48,910 for the paving of sidewalks and a parking lot for the building