Allegro Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Equipment.

Instructions Determine the amounts that should be debited to Land, to Buildings, and to Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded.

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Abstract company's fee for title search Architect's fees Cash paid for land and dilapidated building thereon Removal of old building Less: Residual value 520 3,170 92,000 20,000 5,500 14,500 Interest on short-term loans during construction Excavation before construction for basement 7,400 19,000 Equipment purchased (subject to 2% cash discount, which was not taken) Freight on equipment purchased 65,000 1,340 Storage charges on equipment, necessitated by non-completion of building when equipment was delivered 2,180 New building constructed (building construction took 6 months from date of purchase of land and old building) 485,000 Assessment by city for drainage project 1,600 Hauling charges for delivery of equipment from storage to new building Installation of equipment 620 2,000 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 5,400