On January 1, 2020, Classic Properties purchased land with two buildings on it: one building will be used for the business office; the other, a dilapidated (run-down) building, will be torn down. Other information pertaining to the purchase is as follows: Purchase price of the land and building, including legal fees Appraisal value of land on January 1, 2020 Appraisal value of building on January 1, 2020 Costs to remove run-down building, and clear the land Landscaping around the land perimeter and old building site Paving for a driveway to the building Light posts at entry of property Special municipal assessment for water main infrastructure 870,000 660,330 340,170 6,960 34,800 95,700 52,200 8,700 The total costs were paid by issuing a Note Payable for $500,000, with all remaining costs paid by cash. REQUIRED: 1. Determine the total cost of each of the following items: a. Land b. Building c. Land Improvements 2. Prepare the journal entry to record the purchase made by Classic Properties, using the information provided above and your answer to Part 1. A/