Honey Crisp Co Needed a New Building,and Found a Suitable

Essay

Honey Crisp Co needed a new building,and found a suitable piece of land which had an old building on it.Honey Crisp made an agreement to buy the land and the building for $860,000 cash.The old building was demolished to make way for the new building.The following is information regarding the demolishing of the old building and construction of the new one:
$\begin{array}{|l|r|}\hline \begin{array}{l}\text { Cost of construction of new building, } \\\text { including } \$ 600,000 \text { for a parking lot }\end{array} & 5,260,000 \\\hline \text { Demolition of old building } & 150,000 \\\hline \text { Proceeds from salvage materials } & 20,000 \\\hline\end{array}$ Prepare a single journal entry to record the above cost (assume paid cash).