Determining Cost of Land

Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 and giving a short-term note for $287,000. Legal fees paid were $1,470, delinquent taxes assumed were $13,800, and fees paid to remove an old building from the land were $17,200. Materials salvaged from the demolition of the building were sold for $4,700. A contractor was paid $957,600 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet. $