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Stellar Co. purchased land as a factory site for $512,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $53,760 to raze the old buildings and sold salvaged lumber and brick for $8,064. Legal fees of $2,368 were paid for title investigation and drawing the purchase contract. Stellar paid $2,816 to an engineering firm for a land survey, and $87,040 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,920, and a liability insurance premium paid during construction was $1,152. The contractor's charge for construction was $3,507,200. The company paid the contractor in two installments: $1,536,000 at the end of 3 months and $1,971,200 upon completion. Interest costs of $217,600 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Stellar Co. Assume that the land survey was for the building. Cost of the Land $ Cost of the Building The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) (b) (c) (d) (e) (f) (h) (i) ( ) (k) (0) (m) (n) (0) (p) Money borrowed to pay building contractor (signed a note) Payment for construction from note proceeds Cost of land fill and clearing Delinquent real estate taxes on property assumed by purchaser Premium on 6-month insurance policy during construction Refund of 1-month insurance premium because construction completed early Architect's fee on building Cost of real estate purchased as a plant site (land $210,000 and building $53,700) Commission fee paid to real estate agency Installation of fences around property Cost of razing and removing building Proceeds from salvage of demolished building Interest paid during construction on money borrowed for construction Cost of parking lots and driveways Cost of trees and shrubbery planted (permanent in nature) Excavation costs for new building $(276,900) 276,900 10,340 7,530 10,980 (1,830) 27,670 263,700 9,820 4,140 12,060 (4,550) 11,970 20,700 13,790 3,300 Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.) Other Accounts i $ (276900) Notes Payable 276900 i No Entry No Entry| i No Entry 10980 i No Entry (1830) No Entry 27670 No Entry i i No Entry No Entry No Entry i No Entry i No Entry 11970 No Entry i i No Entry i No Entry 3300 No Entry
