On February 1, 2012, Badger Corporation purchased a parcel of land as a factory site for $50,000. An old building on the property was demolished, and construction began on a new building that was completed on December 12, 2012. Costs incurred during this period are listed below:

Demolition of old building	$ 10,000
Architect's fees	26,000
Legal fees for title investigation
and purchase contract	3,000
Construction costs	1,000,000

(Salvaged materials resulting from demolition were sold for $18,000.)

Badger should record the cost of the land and the cost of the new building, respectively, as

a.	$48,000 and $1,026,000
b.	$45,000 and $1,026,000
c.	$63,000 and $1,032,000
d.	$63,000 and $1,017,000