On March 31, 2020, Capital Investment Advisers paid $4,520,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,052,250. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $549,000. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,973,750. Capital incurred the following additional costs:

Cost to demolish Building 1	$	688,160
Cost of additional landscaping		269,520
Cost to construct new building (Building 3)		3,234,400
Cost of new land improvements near Building 2 (Land Improvements 2)		253,600

Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column.

	LAND	building 2	buildint3	land improvements 1	land improvements 2
purchase price
demolition
landscaping
new building
new improvements
Total

2. Prepare a single journal entry dated March 31, 2020, to record all the incurred costs, assuming they were paid in cash on that date.

Record costs of plant assets.

date	general journal	debit	credit
March 31	land