Question 1 Marine Corporation purchased land as a factory site and contracted with Ariel Construction to construct a factory. Marine Corporation made the following expenditures related to the acquisition of land, building and machinery to equip the factory. Purchase price of the land Demolition of the old building Clearing, and grading of the land Various closing costs in connection with acquiring the land Proceeds with the sale of salvage of old building Architects fee for the plans for the new building Payment to Ariel construction for building construction Machinery purchased Freight charges on machinery Installation and commissioning charges Test run costs of machinery Trees, plants, and other landscaping Installation of the sprinkler system for landscaping Cost to build special platforms and install wiring for the machinery Fire and theft insurance on the factory for the first year of use Cost of drainage system in the land $1,500,000 80,000 150,000 42,000 10,000 50,000 3,250,000 560,000 32,000 10,000 20,000 45,000 5,000 12,000 10,000 5,000 In addition to the above expenditures, Marine Corporation purchased four forklifts from Caterpillar. In payment, Marine Corporation paid $16.000 cash and a signed a noninterest bearing note requiring the payment of $70,000 in one year. An interest rate of 7% property reflects the time value of money for this type of loan. Required Determine the initial valuation of each type of assets Marine Corporation acquired in the above transactions