Determining Cost of Land

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $37,000 in cash and giving a short-term note for $280,000. Legal fees paid were $1,865, delinquent taxes assumed were $14,800, and fees paid to remove an old building from the land were $20,400. Materials salvaged from the demolition of the building were sold for $4,800. A contractor was paid $963,700 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet. $fill in the blank 1