Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $236,000 for the lot plus $131,000 for the old building. The company pays $26,500 to tear down the old building and $39,174 to fill and level the lot. It also pays a total of $1,786,153 in construction costs—this amount consists of $1,680,100 for the new building and $106,053 for lighting and paving a parking area next to the building.
Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
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