HUIP SUV BAIL On November of 2020 the Construction Company was organized and on January 2, 2021 it purchased a building and land at a value of $500,000. The closing statement listed the land at a value of $200,000 and the building at $300,000. It was the intention of management to destroy the building and construct a new building. On January 2, 2021 the building was demolished at a cost of $35,000. Scrap on the building was sold for $20,000. On January 3 construction began on the new building. The building was completed on December 31, 2021. Expenditures for the new building were as follows: 1/2/2021 4/01/2021 10/01/2021 Direct Materials $40,000 40,000 350,000 Direct Labor $40,000 60,000 450,000 Construction Overhead $25,000 30,000 175,000 In order to assist in financing construction, Construction Company obtained a 5-year 10% construction loan for $400,000. Other debt for the company was as follows: 10 Year, 10% bonds $1,000,000 5 year, 13% note $500,000 The Cost of the land to the Construction Company was: Saved Multiple Choice $300,000 $535,000 $315,000 $515,000