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Use the following to answer questions 1 - 4 The company purchased land as a...

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Accounting

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Use the following to answer questions 1 - 4 The company purchased land as a factory site. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed below: Land purchased as a factory site Building construction costs Interest cost related to the construction Demolition of old building Title investigation of land Property taxes on land (past due for last year) Property taxes on land (for the next year) Architect fees (for new building) Sale of salvaged materials $250,000 1,250,000 37,500 40,000 6,000 5,000 7,000 75,000 10,000 1. S account? How much of the "property taxes on the land for the next year" should be capitalized in the Land 2. How should the sale of salvaged materials" be recorded? A. As an added cost of the land B. As a reduction of the cost of the land C. As an added cost to the building D. As a reduction of the cost of the building 3. $. What amount should be recorded to the Land account? What amount should be recorded to the Building account

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