ABC Company acquires a plot of land upon which it will build a supermarket. The purchase price of the land is $1,000,000. Closing costs are $10,000. ABC assumes back taxes and liens of amount $30,000. There are some old structures on the land and ABC spends $20,000 for demolition and removal costs. ABC spends $1,000,000 to build a supermarket on the land. Determine the cost at which the land should be reported on the balance sheet.

a. $1,060,000

b. $1,000,000

c. $1,030,000

d. $2,060,000

e. $1,010,000