P 6. Global Company was formed on January 1, 2010, and began constructing a new plant. At the end of 2010, its auditor discovered that all expenditures involving long-term assets had been debited to an account called Fixed Assets. An analysis of the Fixed Assets account, which had a year-end balance of $2,659,732, disclosed that it contained the following items:

Cost of land	$ 320,600
Surveying costs	4,100
Transfer of title and other fees required by
the county	920
Brokers fees for land	21,144
Attorneys fees associated with land acquisition	7,048
Cost of removing timber from land	49,600
Cost of grading land	4,200
Cost of digging building foundation	35,100
Architects fee for building and land improvements
(80 percent building)	67,200
Cost of building construction	715,000
Cost of sidewalks	11,400
Cost of parking lots	54,400
Cost of lighting for grounds	80,300
Cost of landscaping	11,800
Cost of machinery	993,000
Shipping cost on machinery	55,300
Cost of installing machinery	176,200
Cost of testing machinery	21,600
Cost of changes in building to comply with safety
regulations pertaining to machinery Cost of repairing building that was damaged in the	12,540
installation of machinery	8,900
Cost of medical bill for injury received by
employee while installing machinery	2,560
Cost of water damage to building during heavy
rains prior to opening the plant for operation	6,820
Account balance	$2,659,732

Global Company sold the timber it cleared from the land to a firewood dealer for

$7,000. This amount was credited to Miscellaneous Income.

During the construction period, two of Globals supervisors devoted full time to the construction project. Their annual salaries were $51,000 and $39,000, respectively. They spent two months on the purchase and preparation of the land, six months on the construction of the building (approximately one-sixth of which was devoted to improvements on the grounds), and one month on machin- ery installation. When the plant began operation on October 1, the supervisors returned to their regular duties. Their salaries were debited to Factory Salaries Expense.