1) On January 1, Blair began construction of a new plant. On this date, the company purchased a parcel of land for $200,000 in cash. In addition, it paid $3,000 in surveying costs and $1,000 for the title insurance policy. An old dwelling on the premises was demolished at a cost of $5,000, with $2,000 being received from the sale of materials. Architectural plans were also formalized on January 1, when the architect was paid $40,000. The necessary building permits costing $4,000 were obtained from the city and paid for on January 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
February 28 $300,000
June 1 400,000
August 31 200,000
The building was completed on September 30, 2015. To finance construction of this plant, Blair borrowed $1,000,000 from Small World Bank on January 1, 2015. Blair had no other borrowings. The $1,000,000 was a 15-year loan bearing interest at 6%.
2) Upon completion of the new plant, Blair put the land and building held on January 1 up for resale.
3) During October, major updates were made to the equipment at a cost of $12,000. The useful life of the equipment is not extended by these updates, but productive capacity was improved.
Based on the above, determine the amounts that Blair Company should report at December 31, 2015 related to the following accounts:
A. Land
B. Buildings
C. Equipment
D. Investments
E. Interest Expense
F. Repairs and Maintenance Expense