Question 5

Flounder Resorts began construction of a new hotel on December 1, 2025. On this date, the company purchased a parcel of land for $260,000 in cash. In addition, it paid $2,800 in surveying costs and $6,700 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $9,100, with $1,800 being received from the sale of materials. Architectural plans were also formalized on December 1, 2025, when the architect was paid $63,000. The necessary building permits costing $17,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor as follows:

Date of Payment		Amount of Payment
January 1		$806,000
April 1		895,000
July 1		495,000

The building was completed on July 1, 2026. To finance construction of this hotel, Flounder borrowed $2,483,000 from the bank on December 1, 2025. Flounder had no other borrowings. The $2,483,000 was a 10-year loan bearing interest at 6%. Compute the balance in each of the following accounts at December 31, 2025, and December 31, 2026. (Round answers to 0 decimal places, e.g. 5,275.)

				December 31, 2025		December 31, 2026
(a)		Land		$enter a dollar amount		$enter a dollar amount
(b)		Buildings		enter a dollar amount		enter a dollar amount
(c)		Interest Expense		enter a dollar amount		enter a dollar amount