Werner's Fish House purchases a tract of land and an existing building for $810,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, Werner pays closing costs, including title insurance of $1,100. The company also pays $10,200 in property taxes, which includes $7,100 of back taxes (unpaid taxes from previous years) paid by Werner on behalf of the seller and $3,100 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $40,500 to tear down the old building and remove it from the site. Werner is able to sell salvaged materials from the old building for $5,400 and pays