Reference no: EM133151837

Question - Donbas Company incurred the following expenditures related to the construction of a new home office:

Purchase price of land and an old usable apartment building 2,000,000

Fair value of land 1,830,000

Cost of open house party to celebrate opening of building 25,000

Payment to building contractor 8,007,000

Payment of medical bills of employees accidentally injured while inspecting building construction 10,000

Cost of razing the apartment building 38,000

Payment of delinquent property taxes 20,000

Cost of installing light in parking lot 7,500

Premium for insurance on building during construction 26,000

Interest cost on specific borrowing during construction 303,000

Architect fee on new building 200,800

Grading and drainage on land site 11,000

Cost of trees, shrubs and other landscaping 50,000

Legal fees, including fee for title search 10,000

Cost of paving driveway and parking lot 40,000

Payment of land mortgage and related interest due at time of sale 50,000

Required - Based on the preceding information, determine the amount to be charged to each of the following:

Land

Building

Land Improvement