Exercise 9-3

On March 1, 2017, Oriole Company acquired real estate, on which it planned to construct a small office building, by paying $77,000 in cash. An old warehouse on the property was demolished at a cost of $7,600; the salvaged materials were sold for $1,580. Additional expenditures before construction began included $1,080 attorneys fee for work concerning the land purchase, $4,200 real estate brokers fee, $8,580 architects fee, and $13,400 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.