Question 2:

On September 25, 2020, ATS Corporation purchased land as a factory site for 600,000 TL. An old building on the property was demolished and removed and the construction of a new building which was completed on November 24, 2020. Costs incurred during this period are listed below:

Demolition of old building	60,000TL
Architects fees	15,000TL
Legal fees for title investigation and purchase contract	8,000TL
Construction costs	1,000,000TL

(Salvaged materials resulting from demolition were sold for 120,000TL.)

Required:

1. How much should ATS Corporation record the cost of the land and new building respectively?
2. Record the journal entries assuming all payments and receipts are in cash.