Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $34,000 in cash and giving a short-term note for $340,000. Legal fees paid were $2,405, delinquent taxes assumed were $9,900, 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 $5,600. A contractor was paid $1,137,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet