At December 31, 2009, certain accounts included in the property, plant, and equipment section of the Townsand Company's balance sheet had the following balances:

Land ................ $100,000
Buildings ............... 800,000
Leasehold improvements ........ $500,000
Machinery and equipment ...... 700,000

During 2010, the following transactions occurred:

1. Land site number 621 was acquired for $1,000,000. Additionally, to acquire the land, Townsand paid a $60,000 commission to a real estate agent. Costs of $15,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $5,000.

2. A second tract of land (site number 622) with a building was acquired for $300,000. The closing statement indicated that the land value was $200,000 and the building value was $100,000. Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs:
Excavation fees ........ $11,000
Architectural design fees ..... 8,000
Building permit fee ....... 1,000
The building was completed and occupied on September 29, 2010.

3. A third tract of land (site number 623) was acquired for $600,000 and was put on the market for resale.

4. Extensive work was done to a building occupied by Townsand under a lease agreement that expires on December 31, 2019. The total cost of the work was $125,000, which consisted of the following:
Painting of ceilings ....... $ 10,000 (estimated useful life is one year)
Electrical work ........ 35,000 (estimated useful life is ten years)
Construction of extension tocurrent working area ...... 80,000 (estimated useful life is thirty years)$125,000

The lessor paid one-half of the costs incurred in connection with the extension to the current working area.