Rainbow Logistics purchased land with the intention of building an office. Rainbow also engaged other contractors for fencing, paving, lighting, landscaping, and to remove a dilapidated building to make room for new office building.

The following information relates to these transactions: 

Purchased land for $ 350,000.

Paid $ 4,000 for seller's back property taxes.

Paid $ 22,000 to have the dilapidated building removed.

Paid a builder $ 400,000 to design and build the office building.

Paid an excavation company $ 20,000 to grade and clear the land to make it suitable for building purposes.

Paid a landscaping company $ 10,000 for trees and shrubs.

Paid a contractor $ 16,000 for outside lighting around the parking area and sidewalks.

Paid $ 26,000 to have the parking lot paved.

Paid a fence builder $ 15,000 to construct a security fence around the property.

Instructions

Determine the cost of the land, the building, and the land improvements.