Rodriguez Transfer manufactures conveyor belts. Early in July 2016, Rodriguez Transfer constructed its own building at a materials, labor, and overhead cost of $980,000. Rodriguez Transfer paid cash for the construction costs. Rodriguez Transfer also paid for architect fees and building permits of $70,000.

Requirements

1. How much should Rodriguez Transfer record as the cost of the building in 2016?

2. Record Rodriguez Transfer's transactions related to the construction of the building?