1 Exercise 7-1A Record purchase of land (L07-1) 15 points McCoy's Fish House purchases a tract of land and an existing building for $840,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $1,400. The company also pays $10,800 in property taxes, which includes $7,400 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $3,400 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $42,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $6,000 and pays an additional $11,500 to level the land. eBook Hint Required: Determine the amount McCoy's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) Print Reference Total cost of the land