Question 9 Blossom Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery: Legal fees for title search $540 Property tax in arrears at property purchase date 4,300 Architect's fees 3,100 Cash paid for land and dilapidated building on it 110,000 Removal of old building $20,300 Less: Salvage 5,550 14,750 Surveying before construction 380 Interest on short-term loans during construction 7,500 Excavation before construction for basement and foundation 19,900 Machinery purchased (subject to 3% cash discount, which was not taken) 65,000 Freight on machinery purchased 1,400 Exchange on foreign currency purchase of machinery 1,830 Storage charges on machinery, made necessary because building was still under construction when machinery was delivered 2,190 New building constructed (building construction took six months from date of purchase of land and old building) 480,000 Assessment by city for drainage project 1,890 Fence surrounding the property for security 14,600 Hauling charges for delivery of machinery from storage to new building 660 Installation of machinery 2,100 Customs duty on importing machinery 5,600 Municipal grant to promote locating building in the municipality (8,600) (a)