On Jan 1, 2020 Joe Pepperoni bought a piece of land with an old building on it. He knocks down the old building and builds a pizza shop and adds a parking lot.The cost of the land was $50,000.He paid $3000 in delinquent real estate taxes and $7000 in attorney's fees at the closing.The cost to knock down the old building and clear the land was $16,000, but he was able to sell the scrap bricks and lumber for $6,000.On April 1 Joe began construction on a new building paying $200,000 and another $300,000 on October 1, he paid $10,000 to have the parking lot paved and have lights put up.After the building was completed Joe had an alarm system installed for $2000.

What are the capitalized costs of the associate with the purchase of the property and construction of the building?What journal entries would be recorded?