(Solution) - The following costs were incurred by Foreign Auto Parts in -(2025 Original AI-Free Solution)

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The following costs were incurred by Foreign Auto Parts in connection with the construction of a retail store building:
Cost of land, including $19,000 of legal costs......................................$400,000
Cost to demolish old building............................................................18,750
Costs of grading land for building site..................................................11,200
Costs related to building construction ................................................950,000
Legal costs relating to building permits................................................16,975
Costs of paving parking lot............................................................100,000
1. What is the capitalized cost of the land?
2. What is the capitalized cost of the new building?