The Italian Bread Company purchased land as a factory site for $65,000. 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 $ 8,500 Sale of salvaged materials (1,200) Architect fees (for new building) 17,500 Legal fees (for title investigation of land) 2,500 Property taxes on the land (for the first year) 3,500 Building construction costs 550,000 Interest costs related to the construction 20,500 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.)

The Italian Bread Company purchased land as a factory site for $65,000. 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: 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.)