On January $1,2025,$ Blue Corporation purchased for $\backslash$$$720,000$ a tract of land $($site number $101)$ with a building. Blue paid a real estate broker's commission of $\backslash (\backslash$$ $51,840\backslash ),$ legal fees of $\backslash (\backslash$$ $8,640\backslash ),$ and title guarantee insurance of $\backslash (\backslash$$ $25,920\backslash ).$ The closing statement indicated that the land value was $\backslash (\backslash$$ $720,000\backslash )$ and the building value was $\backslash (\backslash$$ $144,000\backslash ).$ Shortly after acquisition, the building was razed at a cost of $\backslash$$$77,760.$

Blue entered into a $\backslash$$$4,320,000$ fixed$-$price contract with Slatkin Builders, Inc. on March $1,2025,$ for the construction of an office building on land site number $101.$ The building was completed and occupied on September $30,2026.$ Additional construction costs were incurred as follows.

The building is estimated to have a $40-$year life from date of completion and will be depreciated using the $\backslash (150\backslash \%\backslash )$ declining$-$balance method.

To finance construction costs, Blue borrowed $\backslash (\backslash$$ $4,320,000\backslash )$ on March $1,2025.$ The loan is payable in $10$ annual installments of $\backslash (\backslash$$ $432,000\backslash )$ starting on March $1,2026,$ plus interest at the rate of $\backslash (10\backslash \%\backslash ).$ Blue's weighted$-$average amounts of accumulated building construction expenditures were as follows.

For the period March $1$ to December $31,\backslash (2025\backslash$quad $\backslash )\backslash$$$1,872,000$

For the period January $1$ to September $30,\backslash (2026\backslash$quad $\backslash )2,736,000$

Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site number $101$ as of September $30,2026.$

BLUE CORPORATION

Cost of Land $($Site $\backslash$#$101)$

As of September $30,2026$

$\backslash$$

$1$

Cost of Land and Old Building

Interest Capitalized During $2025\backslash$$

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