Exercise 18.1 Determining the elements that make up the cost of an asse LO 18-1 The following costs were incurred by Imports Auto Parts in connection with the construction o retail store building: Cost of land, including $18,400 of legal costs Cost to demolish old building Costs of grading land for building site Costs related to building construction Legal costs relating to building permits Costs of paving parking lot $340,000 18,450 10,600 890,000 16,825 94,000 1 & 2. What are the capitalized cost of the land and new building? New Building + Purchase price of land Demolition cost of old building Cost to level building site Cost to construct building Legal costs related to building Costs of paving parking lot Total capitalized cost Land $ 340,000 18,450 10,600 890,000 16,825 94,000 $1,369,875 S