(Solution Document) Round all calculations to the nearest dollar. Assume a December 31 fiscal year end unless specifically stated otherwise.

Round all calculations to the nearest dollar.

Assume a December 31 fiscal year end unless specifically stated otherwise.

Maldive Company completes construction of a building. The following independent items are the costs and other aspects relevant to the purchase of the lot and construction of the building:

Cash payments to contractor......................................................... $100,000

Cash payment for building permit ...................................................      3,000

Cost of land ...............................................................................    50,000

Cost to raze old building on land (gross) ..........................................    20,000

Proceeds from old building salvage .................................................     5,000

Utility bill for electricity used during construction .................................     2,000

Advance payments for purchase of materials for

 anticipated ordinary repairs .........................................................      1,000

Capitalized interest on construction .................................................      3,000

Required:

1. Compute the final recorded cost of the land.
2. Compute the final recorded cost of the building.