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A company purchased land for $94000 cash. The real estate brokers' commission was $5000 and $7000 was spent for demolishing an old building on
A company purchased land for $94000 cash. The real estate brokers' commission was $5000 and $7000 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building were $1200. Under the historical cost principle, the cost of land is $94000. $104800. $106000. $99800.
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