On February 12 2015, Laker Company purchased a tract of land as a factory site for $175,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows:
Cost of razing old building $ 35,000
Title insurance and legal fees to purchase land 12,000
Architect’s fees 42,500
New building construction cost 875,000
The recorded cost of the completed factory building should be?