Reference no: EM132585585

February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $117,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018.

Costs incurred during this period were:

Item                                                                      Amount

Demolition dilapidated building                     $2,800

Architect Fees                                           $11,250

Legal Fees - for title search                          $1,250

Interest During Active Construction Period     $5,025

Real estate transfer tax                               $975

Construction Costs                                  $605,000

Question 1: Using this information, how much should be recorded as the cost of the land?