Reference no: EM131663252

Question - On March 1, 2016, Beldon Corporation purchased land as a factory site for $74,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2016. Costs incurred during this period are listed below:

Demolition of old building$6,000  

Architect's fees (for new building) 13,000  

Legal fees for title investigation of land 2,500  

Property taxes on land (for period beginning March 1, 2016) 4,400  

Construction costs 640,000   Interest on construction loan 7,000 

Salvaged materials resulting from the demolition of the old building were sold for $3,400.

Required:

1-a. Determine the amounts that Beldon should capitalize as the cost of the land. (Amounts to be deducted should be indicated with a minus sign.)

1-b. Determine the amounts that Beldon should capitalize as the cost of the new building.