1 Exercise 7-1A Record purchase of land (L07-1) -42 olnts McCoy's Fish House purchases a tract of land and an existing building for $920,000. 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 $2,200. The company also pays $12,400 in property taxes, which includes $8,200 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,200 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $46,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $3,400 and pays an additional $10,200 to level the land. eBook 101 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 Purchase price of land References Total cost of the land $ 0