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SportsWorld purchased property for a building site. The costs associated with the property were: Purchase Price $175,000 Real Estate Commissions $15,000 Legal Fees $800 Expense
SportsWorld purchased property for a building site. The costs associated with the property were:
| Purchase Price | $175,000 |
| Real Estate Commissions | $15,000 |
| Legal Fees | $800 |
| Expense of clearing land | $2,000 |
| Expense to remove old building | $1,000 |
What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
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