Determining cost of land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 in cash and giving a short-term note for $328,000. Legal fees paid were $1,905, delinquent taxes assumed were $15,600, and fees paid to remove an old building from the land were $19,200. Materials salvaged from the demolition of the building were sold for $5,400. A contractor was paid $1,088,300 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. 1476795 X Feedback Check My Work Costs incurred to ready the asset for use are added to the asset account. Materials salvaged and sold during the process reduce the cost of the land.