Algonquin Escape Limited purchased a tract of land and contracted with a commercial developer to
build an office building. Algonquin Escape Limited also engaged other contractors for fencing, paving,
lighting, and landscaping.
• Purchased land for $100,000.
• Paid $2,000 for seller's back property taxes.
• Paid a builder $225,000 to design and build the office building.
• Paid an excavation company $6,000 to grade and clear the land to make it suitable for building
purposes.
• Paid a landscaping company $6,500 for trees and shrubs.
• Paid a lighting contractor $10,000 for outside lighting around the parking area and sidewalks.
• Paid $15,000 to have the parking lot paved.
• Paid a fence builder $12,000 to construct a security fence around the property.
Required
1. Based on the following data listed above, determine the cost of the land, building, and land
improvements.