The Italian Bread Company purchased land as a factory site for $55,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows: Demolition of old building $7,500
Sale of salvaged materials (1,000 )
Architect fees (for new building) 12,500
Legal fees (for title investigation of land) 1,500
Property taxes on the land (for the first year) 2,500
Building construction costs 450,000
Interest costs related to the construction 15,500

Required:
Determine the amounts that the company should record in the Land and the Building accounts.