On January 2 of the current year Vaughn, Inc acquired land for $2,000,000 to be used to construct a new service and repair center. The closing costs amounted to $110,000 and Vaughn paid $20,000 for the current period's property taxes. There was an existing structure on the land that had been abandoned for several years Vaughan agreed to remove the building and dispose of any scrap materials. The demolition cost was $67,000 and the company was required to pay $13,800 to remove the debris Vaughn was able to sell scrap materials for $4.500. Read the requirements Requirement a. Determine the cost of the land and any expenses incurred during the acquisition The cost of the land is $ and the costs charged to expense related to the acquisition is 5 Requirement b. Prepare the journal entries necessary to record the amount of costs capitalized and the costs charged to expense related to the property's acquisition Assume that all expenditures were made in cash (Record debits first, then credits. Exclude explanations from any joumal entries) First record a journal entry for the amount of costs capitalized Do not record the costs charged to expense related to the property's acquisition. We will do that in the next step W Account Current Year Now record a joumal entry for the costs charged to expense related to the property's acquisition Account Current Year