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1.On March 1, 2013, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2013. Costs incurred during this period are listed below:
Demolition of old building .................. $ 4,000Architect's fees (for new building) ............... 12,000Legal fees for title investigation of land ............. 2,000Property taxes on land (for period beginning March 1, 2013) .... 3,000Construction costs ...................... 500,000Interest on construction loan .................. 5,000Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required:Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
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