Lopez Transfer manufactures conveyor belts. Early in August 2013, Lopez Transfer constructed its own building at a

Question:

Lopez Transfer manufactures conveyor belts. Early in August 2013, Lopez Transfer constructed its own building at a materials, labor, and overhead cost of $950,000. Lopez Transfer paid cash for the construction costs. Lopez Transfer also paid for architect fees and building permits of $75,000.

Requirements
1. How much should Lopez Transfer record as the cost of the building in 2013?
2. Record Lopez Transfer’s transactions related to the construction of the building.