1. On February 1, 2013, Edwards Corporation purchased a parcel of land as a factory site for $250,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2013. Edwards has no debt. Costs incurred during this period were:

Demolition of old building	$6,000
Sale of salvaged materials from the demolition	1,000
Architects fees	12,000
Legal fees for land purchase	2,000
Construction costs	600,000

Required:

At what amount should Edwards record the cost of the land and the new building, respectively?