Problem $7-1$A $($Algo$)$ Determine the acquisition cost of land and building $($LO$7-1)$

The Italian Bread Company purchased land as a factory site for $$66,000.$ An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:

Demolition of old building

Sale of salvaged materials

Architect fees $($for new building$)$

Legal fees $($for title investigation of land$)$

Property taxes on the land $($for the first year$)$

Building construction costs

Interest costs related to the construction

$$8,600$

$(1,000)$

$18,000$

$2,600$

$3,600$

$560,000$

$21,000$

Required:

Determine the amounts that the company should record in the Land and the Building accounts. $($Amounts to be deducted should be indicated by a minus sign.$)$

Demolition of old building

Sale of salvaged materials

Architect fees $($for new building$)$

Legal fees $($for title investigation of land$)$

Property taxes on the land $($for the first year$)$

Building construction costs

Interest costs related to the construction

$$8,600$

$(1,000)$

$18,000$

$2,600$

$3,600$

$560,000$

$21,000$

Required:

Determine the amounts that the company should record in the Land and the Building acco should be indicated by a minus sign.$)$

$\backslash$table$[[$Purchase price of land$],[$Demolition of old building$],[$Sale of salvaged materials$],[$Architect fees $($for new building$)],[$Legal fees $($for title investigation of land$)],[$Building construction costs$],[$Interest costs related to the construction$],[$Totals$]]$