Grieg Landscaping began construction of a new plant on December 1 2014. On this date the company purchased a parcel of land for $139 000 in cash. In addition it paid $2 000 in surveying costs and $4 000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3 000 with $1 000 being received from the sale of materials. Architectural plans were also formalized on December 1 2014 when the architect was paid $30 000. The necessary building permits costing $3 000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor as follows. Date of Payment Amount of Payment March 1 $240 000 May 1 330 000 July 1 60 000 The building was completed on July 1 2015. To finance construction of this plant Grieg borrowed $600 000 from the bank on December 1 2014. Grieg had no other borrowings. The $600 000 was a 10-year loan bearing interest at 8%. Instructions Compute the balance in each of the following accounts at December 31 2014 and December 31 2015. (Round amounts to the nearest dollar.) (a) Land. (b) Buildings. (c) Interest Expense.
