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Bob the Builder purchased land as a factory site for $282,000. He paid $10,000 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1,350. Legal fees of $870 were paid for title investigation and making the purchase. Architect's fees were $10,300. Liability insurance during construction cost $650. Excavation costs were $2,610. A contractor was paid $600,000 to construct the new building. An assessment made by the city for pavement was $1,600. Interest costs during construction were $42,500. Assume that Bob prepares his financial statements based on IFRS.
Question 1: Determine the cost of land to be capitalized.
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