Skyver Corporation acquired a plant site with the intention of constructing a new manufacturing facility. In addition to purchasing the plant site, Skyver made some additional expenditures in preparation for its new plant. Below is a partial list of expenditures incurred: Purchased land (with a building on it) as a plant site. The land was priced at $800,000 and the building at $100,000. Demolished the building at a cost of $600,000. Bought equipment for $70,000. Sales tax paid was an additional $7,000. Shipping costs of $5,000 were also paid. Once the equipment arrived to the plant, an outside firm was brought in to assemble it for a cost of $2,000. Trees and shrubs were planted costing $12,000. An architect and contractor were paid $400,000 for construction of the new building. A 1-year insurance policy costing $3,000 was taken out on the equipment to cover potential damage after the equipment is set into service. A loan was taken out to finance the construction. Interest incurred during the construction period amounted to $10,000. . A storm hit the partially constructed building causing $14,000 of damage. The company's insurance reimbursed $9,000. Building permits were acquired at a cost of $1,000.