Work Area 137 Exercise 4 up to 5 points 138 Ardvark Co. is building a new factory. Land was purchased for $550,000 as a factory site. The process of tearing down 139 two buildings on the site need to be removed before beginning constructiion which is estimated to take 6 months. 140 Demolish of the old building $60,000 and salvaged lumber and bricksold for $9,700. The title comapny received legal 141 fees of $3,500 for title investigation and drafting the purchase contract. Ardvark paid $2,500 for a land survey and 142 $56,000 for drawing the factory plans to an engineering firm. Title insurance on the land cost $5,500 and liability 143 insurance of $1,400 for liability insurance. The building contractor received payments in two installments: $1,500,000 at 144 the end of 3 months and $1,770,000 upon completion. Interest costs of $210,000 were incurred to finance the 145 construction. 146 147 148 Requirements 149 Determine the cost of the land and the cost of the building as they should be recorded on the books of Ardvarkr Co. 150 Assume that the land survey was for the building. 151 152 Cost of land 153 154 Cost of building 155 156 157 Show your calculations in the work area to the right. Failure to show your work will result in no credit for this exercise. 158