Problem $7-1$A Determine the acquisition cost of land and building $($LO$7-1)$

The Italian Bread Company purchased land as a factory site for $$63,000.$ An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:

Demolition of old building

Sale of salvaged materials

Architect fees $($for new building$)$

Legal fees $($for title investigation of land$)$

Property taxes on the land $($for the first year$)$

Building construction costs

Interest costs related to the construction

$$8,300$

$(1,000)$

$16,500$

$2,300$

$3,300$

$530,000$

$19,500$