Indigo Co. purchased land as a factory site for $107,200. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $11,256 to raze the old buildings and sold salvaged lumber and brick for $1,688. It paid legal fees of $496 for title investigation and drawing up the purchase contract. Indigo paid $590 to an engineering firm for a land survey, and $18,224 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $402, and a liability insurance premium paid during construction was $241. The contractor's charge for construction was $734,320. The company paid the contractor in two installments: $321,600 at the end of 3 months, and $412,720 upon completion. Interest costs of $45,560 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Indigo Co. Assume that the land survey was for the building. Cost of the land Cost of the building $ 108098 657761

Indigo Co. purchased land as a factory site for $107,200. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $11,256 to raze the old buildings and sold salvaged lumber and brick for $1,688. It paid legal fees of $496 for title investigation and drawing up the purchase contract. Indigo paid $590 to an engineering firm for a land survey. and $18,224 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $402, and a liability insurance premium paid during construction was $241. The contractor's charge for construction was $734,320. The company paid the contractor in two installments: $321,600 at the end of 3 months, and $412,720 upon completion. Interest costs of $45,560 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Indigo Co. Assume that the land survey was for the building. Cost of the land Cost of the building $