On December 1, 2019, a company purchased a tract of land as a factory site for 800,000. The old building on the property was razed, and salvaged materials resulting from demolition were sold. Additional costs incurred and salvage proceeds realized during December 2019 were as follows:

Cost to raze old building 70,000

Legal fees for purchase contract and to record ownership 10,000

Title guarantee insurance 16,000

Proceeds from sale of salvaged materials 8,000

What amount should be reported as land at December 31, 2019 statement of financial position?

Select one:

a. 896,000

b. 826,000

c. I dont know

d. 862,000

e. 888,000