Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $550,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $35,000; title insurance, $2,500; and miscellaneous closing costs, $7,000. The warehouse is immediately demolished at a cost of $35,000 in anticipation of building a new warehouse.

Determine the amount FVI should record as the cost of the land.

Cost of the land