The cost of an asset includes all costs incurred to make the asset ready for its intended use.

Northfield Corporation paid $125,000 for a plot of land. It also paid

$5,000 as a broker’s fee, $1,250 for legal fees, and $12,000 to tear down the existing structures in order to make the land ready for a new building. The land should be recorded in the accounts at an amount of

$ .