On February 1, 2013, Forwards Corporation purchased a parcel of land as a factory site for $455,000. An old building on the property was demolished and construction begun on a new warehouse that was completed April 15, 2014. Costs incurred on the construction project are listed below.

Demolition of old building ........................... $ 21,000 Architect's fees ..................................... 31,700 Legal fees--title investigation ...................... 4,100 Construction costs ................................... 950,000 Imputed interest based on stock financing ............ 14,000 Landfill for building site ........................... 19,300 Clearing of trees from building site ................. 9,600 Temporary buildings used for construction activities . 29,000 Land survey .......................................... 4,000 Excavation for basement .............................. 13,200 (Salvage materials from demolition sold for $1,800) (Timber sold for $3,300) Determine the cost of the land and new building.

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Cost Of Land

Partiulars Amount

Cost $455,000

Demolition of old building 21,000

Legal fees--title investigation 4,100

Landfill for building site 19,300

Clearing of trees from building site 9,600

Land survey 4,000

Salvage materials from demolition sold ($1,800)

Timber sold ($3,300)

Total $507,900

Cost of Building

Particulars Amount

Construction costs $950,000

Temporary buildings used for construction activities 29,000

Excavation for basement 13,200

Architect's fees 31,700

Total $1,023,900