LU08.1:

Determining Cost of Land

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 and giving a short-term note for $267,000. Legal fees paid were $1,660, delinquent taxes assumed were $9,700, and fees paid to remove an old building from the land were $22,800. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $896,800 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet. $ ..

Answer is not: $ 57,750 / $324,760