Exercise 9-03

On March 1, 2020, Larkspur, Inc. acquired real estate on which it planned to construct a small office building. The company paid $77,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the salvaged materials were sold for $3,100. Additional expenditures before construction began included $1,700 attorneys fee for work concerning the land purchase, $6,000 real estate brokers fee, $7,300 architects fee, and $14,500 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.

Cost of land

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