Determine the Cost of Land Village Delivery Company purchased a lot to construct a new warehouse for $323,000, paying $41,000 in cash and giving a short-term note for the remainder. Legal fees paid in connection with the purchase were $1,470, delinquent taxes assumed were $10,700, and fees paid to remove an old building from the land were $19,500. Materials salvaged from the demolition of the building were sold for $5,500. A contractor was paid $1,106,600 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. 390,170 X Feedback Check My Work Costs incurred to get the asset ready for it's intended use are added to the asset account. Materials salvaged and sold during the process reduce the cost of the asset.