Exercise 9-3

On March 1, 2015, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $92,210 in cash. An old warehouse on the property was razed at a cost of $9,010; the salvaged materials were sold for $1,750. Additional expenditures before construction began included $1,970 attorneys fee for work concerning the land purchase, $5,190 real estate brokers fee, $7,280 architects fee, and $13,120 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.