The following costs were incurred by Euro Auto Parts in connection with the construction of a retail store building:

1. What is the capitalized cost of the land?
2. What is the capitalized cost of the new building?

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Cost of land, including $7,500 of legal costs Cost to demolish old building Costs of grading land for building site Costs related to building construction Legal costs relating to building permits Costs of paving parking lot $175,000 10,325 6,500 525,000 9,500 35,000