On March 1, 2018, 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, 2018. Costs incurred during this period are listed below:
Demolition of old building ............................................................ $ 4,000
Architect's fees (for new building) .................................................... 12,000
Legal fees for title investigation of land ............................................... 2,000
Property taxes on land (for period beginning March 1, 2018) ....................... 3,000
Construction costs ........................................................................ 500,000
Interest on construction loan ............................................................. 5,000
Salvaged 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.