Determine the amounts that the company should record

Reference no: EM131521342

Question: Italian Bread Company purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed on the next page:

Demolition of old building $ 8,000

Sale of salvaged materials (1,000)

Architect fees (for new building) 15,000

Legal fees (for title investigation of land) 2,000

Property taxes on the land (for the first year) 3,000

Building construction costs 500,000

Interest costs related to the construction 18,000

Required: Determine the amounts that the company should record in the Land and the Building accounts.

Reference no: EM131521342

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