Chapter 7 Homework Submit your answers in CANVAS before it is due Use the following to answer questions 1 - 4 TR Company purchased land as a distribution center. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed below: Land purchased as a distribution center Building construction costs Interest cost related to the construction Demolition of old building Title investigation of land Property taxes on land (past due for last year) Property taxes on land for the next year) Architect fees (for new building) Sale of salvaged materials $400,000 2,500,000 50,000 30,000 10,000 6,000 18,000 24,000 9,000 1. $ How much of the "property taxes on the land for the next year" should be capitalized in the Land account? 2. How should the "sale of salvaged materials" be recorded? A. As an added cost of the land B. As a reduction of the cost of the land C. As an added cost to the building D. As a reduction of the cost of the building What amount should be recorded to the Land account? What amount should be recorded to the Building account