Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 and giving a short-term note for $260,000. Legal fees paid were $2,180, delinquent taxes assumed were $12,900, and fees paid to remove an old building from the land were $21,800. Materials salvaged from the demolition of the building were sold for $4,300. A contractor was paid $872,500 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.