Lake Company recently incurred the following costs: (1) Purchase price of land and dilapidated building $250,000 (2) Real estate brokers commission 14,000 (3) Net demolition costs of dilapidated building 39,000 (4) Excavation costs for new building 44,000 (5) Architects fees and building permits 30,000 (6) Costs associated with new building construction 750,000 (7) Costs associated with new furniture and equipment 250,000 (8) Actual interest costs during building construction 68,000 (9) Actual interest cost after completion of building construction 120,000 (10) Costs of walks, driveways, and parking lot 55,000

1. The building should be recorded on Lakes books at a. $680,000. b. $724,000. c. $763,000. d. $892,000.

2 Land should be recorded on Lakes books at a. $250,000. b. $264,000. c. $303,000. d. $333,000.

Please explain how you got to the answers