Question 3 (10 marks)

On March 1, 2021, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below:

Demolition of old building	$ 4,000
Architect's fees (for new building)	12,000
Legal fees for title investigation of land	2,000
Property taxes on land (for period beginning March 1, 2016)	3,000
Construction costs	500,000
Interest on construction loan	5,000

Salvaged materials resulting from the demolition of the old building were sold for $2,000.

Required:

Determine the amounts that Beldon should capitalize as the cost of the land and the new building.