Sparky, Co. purchased land as a factory site for $500,000. Sparky paid $16,000 to tear down an existing building on the land to make room for the factory. Sparky was able to salvage some of the materials from the razed building and sold them for $5,400. Legal fees of $5,880 were paid for title insurance on the land purchase. An architect was hired to design the factory and Sparky paid fees of $32,200 for this service. There was an assessment by the city for a drainage project that cost $7,900. Excavation costs totaled $10,440. The contractor was paid $2,200,000 for the construction of the factory. Liability insurance during construction cost $12,600. Interest costs during construction were $170,000. The original cost of the Land that should be reported by Sparky is: O 516,480 0 529,780 0524,380 O 534,820 Early in 20x1, Sparky, Inc. finalized plans to expand operations. Construction of the new office building began on February 1 and was completed on December 31, 20x1. Construction expenditures paid to sub-contractors were made according to the table below. The first expenditure made on Feb 1 included land costs of $200,000. Feb 1 $ 900,000 May 1 $1,200,000 Aug 1 $1,500,000 1 $ 750,000 Dec 31 $ 500,000 Sparky borrowed a $2,100,000, 8%, 2-year note on February 1st to help finance construction. Interest will be paid annually. The company's only other outstanding debt during all of 20x1 was a $3,000,000, 9%, 10-year note payable, with interest being paid annually. Determine the Original Cost of the Office Building after taking into consideration the capitalization of interest: $_ $4,650,000 $4,818,000 $4,844,500 $4,850,000