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A company purchased land for $96800 cash. Real estate brokers' commission was $3700 and $7500 was spent for demolishing an old building on the
A company purchased land for $96800 cash. Real estate brokers' commission was $3700 and $7500 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 was $1200. Under the historical cost principle, the cost of land would be recorded at $96800. O $106800. $103100. $108000.
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