QUESTION 66 On June 1, 2016, RTA Inc. purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below: Purchase price $195,000 Title insurance $1,500 Legal fees to purchase land $1,000 Cost of razing old building on lot 8,500 Proceeds from sale of salvageable materials (1,200) Property taxes, January 1, 2016-June 30, 2016 3,000 Cost of grading and filling building site 9,000 Cost of building construction 620,000 Interest on construction loan 12,000 Cost of constructing driveway 8,000 Cost of parking lot and fencing 12,000 Required: Indicate the accounts that would be affected by the above transactions and the resulting balance in each account. Apply the interest on the construction loan to the cost of the building only