The Italian Bread Company purchased land as a factory site for $62,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:

Demolition of old building $8,200

Sale of salvaged materials (1,200)

Architect fees (for new building) 16,000

Legal fees (for title investigation of land) 2,200

Property taxes on the land (for the first year) 3,200

Building construction costs 520,000

Interest costs related to the construction 19,000

Required:

Determine the amounts that the company should record in the Land and the Building accounts. (Amounts to be deducted should be indicated by a minus sign.)

Land Building Purchase price of land Demolition of old building Sale of salvaged materials Architect fees (for new building) Legal fees (for title investigation of land) Building construction costs Interest costs related to the construction Totals