Burley Company had the following expenditures and receipts in conjunction with a new facility acquired for operations:
Cost to acquire new parcel of land for the facility; $600,000
Cost to raze an existing old building on the land; 32,000
Proceeds received from selling the salvage of the old building; 3,000
Cost of parking lots and driveways; 180,000
Cost of new trees and shrubbery planted on the new location; 75,000
Architect’s fee on the building; 24,000
Payment of delinquent property taxes assumed from the prior owner; 18,000
Installation of fences and gates on the property; 21,000
Payment to contractor for the construction of the building; 1,800,000
Finder’s fee paid to a broker for locating the site; 24,000
Money borrowed on a note to help pay for construction; 1,000,000
Interest paid on the note during construction; 88,000
Cost of building permits; 23,000
Cost to install water and sewer piping – to be maintained by the city; 78,000
What is the cost of land improvements?
| Cost of parking lots and driveways; 180,000 | Land Improvement | 180,000 |
| Cost of new trees and shrubbery planted on the new location; 75,000 | Land Improvement | 75,000 |
| Installation of fences and gates on the property; 21,000 | Land Improvement | 21,000 |
| Cost to install water and sewer piping – to be maintained by the city; 78,000 | Land Improvement | 78,000 |
| 354,000 |
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