The company plays $33,500 to tear down the old buildingand $47,000 to landscapethe lot. It also pays a total of $1,540,000 in construction costs-this amount consists of $1,452,200 for the new building and $87,800 for lighting andpaving a parking areanext to the building. Prepare a single journal entry to record thesecosts incurred by Cala, all of which are paid in cash.Cost of LandPurchase price for land$280,000Purchase price for old building$110,000Demolition costs for an old building $33,500Fill and level the land$47,000Total cost of land$470,500Cost of New building and land improvementsCost of new building$1,452,200Cost of land improvements$87,800
