Problem #2Capitalizing Acquisition Costs Gibbs Manufacturing Co. was incorporated on 1/2/17 but was unable to begin manufacturing activities until 8/1/17 because new factory facilities were not completed until that date. The following expenditures were made: Date Item Amount 1/31/17 Purchase of land and old building on land $280,000 5/1/17 Partial payment of new building construction 210,000 8/1/17 Final payment on building construction 210,000 Additional information: 1. When the old building was removed, Gibbs paid Kwik Demolition Co. $4,000, but also received $1,500 from the sale of salvaged material. 3. Legal fees covered the following: Examination of title covering purchase of land 2,000 Legal work in connection with the building construction 1,500 4. The fire insurance premium covered premiums for a three-month construction term beginning May 1, 2017 and ending Aug 1, 2017 = $450 5. General expenses covered the following for the period 1/2/17 to 8/1/17. Plant superintendent covering supervision of new building. 10,000 Instructions Determine the proper balances as of 12/31/17 for a separate land account Land Buildings