Check my work Exercise 7-1A Record purchase of land (L07-1) McCoy's Fish House purchases a tract of land and an existing building for $1,000,000. 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 $3.000. The company also pays $14,000 in property taxes, which includes $9,000 of back taxes (unpald taxes from previous years) paid by McCoy on behalf of the seller and $5,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $50,000 to tear down the old building and remove it from the site. McCoy is able to sel salvaged materials from the old building for $5,000 and pays an additional $11,000 to level the land. 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.) Total cost of the land Next >