Rose Fuel Company purchased land for $200,000.
Demolition of the existing building on the land totaled $60,000.
Rose Fuel sold salvage materials from the building site for $20,000.
A few months later Rose Fuel built a production building on the
land at a cost of $1,200,000 including site preparation costs of $80,000.
Rose Fuel also installed a fence for $10,000 and paved a parking lot for $30,000.
A. What amount should Rose Fuel record for the cost of the land?
B. What amount should Rose Fuel record for the cost of the building?