AC 310 Chapter 10 Review Material Assignment 1 The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed below: Demolition of old building Sale of salvage material Architect fees (for new building) Legal fees (for title investigation of land) Property taxes on the land (for the first year) Building construction costs 9,000 (2,100) 20,000 3,000 7,000 600,000 Determine the amount that the company should record in the Land account and the Building account