Determining Cost of Land

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $39,000 and giving a short-term note for $254,000. Legal fees paid were $2,095, delinquent taxes assumed were $15,500, and fees paid to remove an old building from the land were $17,500. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $890,700 to construct a new warehouse.

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