Exercise 7-1A Record purchase of land (L07-1) McCoy's Fish House purchases a tract of land and an existing building for $820,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $1,200. The company also pays $10,400 in property taxes, which includes $7,200 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $3,200 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $41,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $5,600 and pays an additional $11,300 to level the land. Required: Determine the amount McCoy's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) $ Purchase price of land Title insurance Property taxes Cost of removing the building Salvaged materials 820,000 1,200 10,400 41,000 5,600 % 11,300 Level the land Total cost of the land $ 889,500 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted