Question:
Lebeau Company recently purchased some property for $2,500,000. It was a large parcel of land with an old building on it. Lebeau paid back taxes to obtain this property of $50,000. They put a new building on the land costing $3,000,000 and spent $150,000 removing the old building. Some of the materials from the old building were sold to a recycler for $60,000. A parking lot was added at the end for $600,000. Survey fees amounted to $30,000 to obtain a mortgage. Interest on loans during construction was $40,000. Interest on loans after the building was placed in service was $10,000.
Prepare a schedule allocating the above costs to the appropriate assets.