On March 1, 2008, Penner Company acquired real estate on which it planned to construct a small office building. The company paid \($80,000\) in cash. An old warehouse on the property was razed at a cost of \($8,600;\) the salvaged materials were sold for \($1,700.\) Additional expenditures before construction began included \($1,100\) attorney’s fee for work concerning the land purchase, \($5,000\) real estate broker’s fee, \($7,800\) architect’s fee, and \($14,000\) to put in driveways and a parking lot.

Instructions

(a) Determine the amount to be reported as the cost of the land.

(b) For each cost not used in part (a), indicate the account to be debited.