Exercise 9-3

On March 1, 2019, Pina Colada Corp. acquired real estate on which it planned to construct a small office building. The company paid $88,000 in cash. An old warehouse on the property was razed at a cost of $9,000; the salvaged materials were sold for $2,700. Additional expenditures before construction began included $1,400 attorneys fee for work concerning the land purchase, $5,600 real estate brokers fee, $7,600 architects fee, and $13,300 to put in driveways and a parking lot.

Determine the amount to be reported as the cost of the land.