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Tamarisk Landscaping began construction of a new plant on December 1 , 2 0 2 5 . On this date, the company purchased a parcer

Tamarisk Landscaping began construction of a new plant on December 1,2025. On this date, the company purchased a parcer or rand for $278,000 in cash. In addition, it paid $4,000 in surveying costs and $8,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $6,000, with $2,000 being received from the sale of materials.
Architectural plans were also formalized on December 1,2025, when the architect was paid $60,000. The necessary building permits costing $6,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2026 as follows.
\table[[Date of Payment,],[March 1,\table[[Amount of Payment],[May 1]]480,000],[July 1,660,000]]
The building was completed on July 1,2026.
To finance construction of this plant, Tamarisk borrowed $1,200,000 from the bank on December 1,2025. Tamarisk had no other borrowings. The $1,200,000 was a 10-year loan bearing interest at 8%.
Compute the balance in each of the following accounts at December 31,2025, and December 31,2026.
December 31,2025
December 31,2026
a. Land
b. Building
C. Interest expense
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