. . UPS purchased a six-acre tract of land in Columbia, SC and an existing building for $500,000. The company plans to remove the old building and construct a distribution hub and a small office building on the site. In addition to the purchase price, the company made the following expenditures at closing of the purchase: Title insurance Commissions Property taxes $3,000 16,000 *6,000 The $6,000 in property taxes included $2,000 of delinquent taxes paid by UPS on behalf of the seller and $4,000 attributable to the portion of the current fiscal year after the purchase date. Shortly after closing, the company paid a contractor $25,000 to tear down the old building and remove it from the site. An additional $5,000 was paid to regrade the land. What amount should be capitalized?