January 1, 2020 Landtek Inc. acquired land and existing building by paying cash of $400,000 and signing a non-interest bearing note requiring the company to pay the remaining $2,000,000 on December 31, 2022. The applicable interest rate is 7%. Transfer taxes, title insurance, and other costs totaling $24,000 were paid at closing. During February, the old building was demolished at a cost of $120,000, and an additional $100,000 was paid to clear and grade the land.

Required:

How much should Landtek capitalize in the Land account?