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Question - Cerner manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated price is $225,000 for the lot plus $120,000 for the old building. The company pays $34,500 to tear down the old building and $51,000 to fill and level the lot. It also pays a total of $1,440,000 in construction costs - this amount consists of $1,354,500 for the new building and $85,500 for lighting and paving a parking area next to the building.
Prepare a single journal entry to record these costs incurred by Cerner, all of which are paid in cash.
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