Riviera Resorts began construction of a new hotel on October 1, 2014. On this date, the company purchased a parcel of land for $260,000 in cash. In addition, it paid $3,000 in surveying costs and $7,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $9,000, with $2,000 being received from the sale of materials.

Architectural plans were also formalized on October 1, 2014, when the architect was paid $62,000. The necessary building permits costing $16,000 were obtained from the city and paid for on October 1 as well. The excavation work began during the first week in October with payments made to the contractor as follows. Date of Payment	Amount of Payment
January 1	$800,000
April	900,000
July 1 500000 The building was completed on July 1, 2015. To finance construction of this hotel, Riviera borrowed $2,500,000 from the bank on December 1, 2014. Riviera had no other borrowings. The $2,500,000 was a 10-year loan bearing interest at 6%. Compute the balance in each of the following accounts at December 31, 2014, and December 31, 2015. (Round amounts to the nearest dollar.) (a) Land. (b) Buildings. (c) Interest Expense.