E$10\mathrm{.}4($LO $2,3,7)($Treatment of Various Costs$)$ Farrey Supply Ltd$.$ is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery:

Legal fees for title search

$$

$$

$$

$$520$

Property tax in arrears at property purchase date

$$

$$

$$

$4,500$

Architect$$s fees

$$

$$

$$

$2,800$

Cash paid for land and dilapidated building on it

$$

$$

$$

$112,000$

Removal of old building

$$

$$20,000$

$$

$$

Less: Salvage

$$

$5,500$

$$

$14,500$

Surveying before construction

$$

$$

$$

$370$

Interest on short$-$term loans during construction

$$

$$

$$

$7,400$

Excavation before construction for basement and foundation

$$

$$

$$

$19,000$

Machinery purchased $($subject to $2\%$ cash discount, which was not taken$)$

$$

$$

$$

$65,000$

Freight on machinery purchased

$$

$$

$$

$1,340$

Exchange on foreign currency purchase of machinery

$$

$$

$$

$1,200$

Storage charges on machinery, made necessary because building was still under construction when machinery was delivered

$$

$$

$$

$2,180$

New building constructed $($building construction took six months from date of purchase of land and old building$)$

$$

$$

$$

$485,000$

Assessment by city for drainage project

$$

$$

$$

$1,600$

Fence surrounding the property for security

$$

$$

$$

$15,000$

Hauling charges for delivery of machinery from storage to new building

$$

$$

$$

$620$

Installation of machinery

$$

$$

$$

$2,000$

Customs duty on importing machinery

$$

$$

$$

$5,400$

Municipal grant to promote locating building in the municipality

$$

$$

$$

$(8,000)$

Instructions

Determine the amounts that should be included in the cost of land, buildings, and machinery. Indicate how any amounts that are not included in these accounts should be recorded