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UVW began construction of a new office building on March 1, Y1. On the day construction began, UVW borrowed $240,000 at 7% and immediately spent it on the project. An additional payment of $60,000 was also made on the day construction began. Additional expenditures of $75,000 were made on May 1 and August 31. Construction was completed and the building was placed in service on December 31, Y1. In addition to the $240,000 borrowed to finance the project, UVW also has $2,000,000 of other debt at 5% outstanding for the entire year.
Question 1: What is the balance in the building account on the December 31, Y1 balance sheet?
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