- Saved to this PC Search ces E Mailings Review EE 8 | 21 View Help PDFelement 1 Normal 1 No Spac.. Heading 1 Title Subtitle Paragraph Styles On July 1, 20X4 Patten Company purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below (next page): Purchase price 125,000 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 from old building (1,200) Property taxes, January 1, 20X4 - June 30, 20X4 3,000 Cost of grading and filling site 9,000 Cost of building construction 650,000 Interest on construction loan 12,000 Cost of constructing driveway 8,000 Cost of parking lot and fencing 14.000 Required: Indicate the specific property, plant and equipment accounts that would be alTected 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