Legal institutions provide channels for the labor force to use in communicating their concerns about fairness to employers.

A company needed a new building.It found a suitable location with an existing old building on the land.The company reached an agreement to buy the land and the building for $960,000 cash.The old building was demolished to make way for the needed new building.Following is information regarding the demolition of the old building and construction of the new one:
Construction cost of new building $8,900,000
Cost for parking lot……………………………………….$260,000
Demolition of old building…………………………… 200,000
Proceeds from sale of salvaged materials from old building 70,000
Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.