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Knight Company acquired a new tract of land for $250,000. Knight also paid $20,000 in taxes and fees, $23,000 to remove an old building, and
Knight Company acquired a new tract of land for $250,000. Knight also paid $20,000 in taxes and fees, $23,000 to remove an old building, and $75,000 for logging, grading, and filling the land prior to its use. Proceeds from the sale of timber as a result of logging were $40,000. Determine the amount that Knight would record as the cost of the land.
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