5. On December 1, 2014, Hogan Co. purchased a tract of land as a factory site for $750,000. The old

building on the property was demolished, and salvaged materials resulting from demolition were sold.

Additional costs incurred and salvage proceeds realized during December 2014 were as follows:

Cost to demolish old building $70,000

Legal fees for purchase contract and to record ownership 10,000

Title guarantee insurance 16,000

Proceeds from sale of salvaged materials 8,000

In Hogan 's December 31, 2014 balance sheet, what amount should be reported as land?

A. $776,000 B. $812,000 C. $838,000 D. $846,000