On March 1, 2017, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $86,000 in cash. An old warehouse on the property was demolished at a cost of $9,400; the salvaged materials were sold for $1,940. Additional expenditures before construction began included $1,440 attorneys fee for work concerning the land purchase, $5,100 real estate brokers fee, $8,940 architects fee, and $15,200 to put in driveways and a parking lot.

Exercise 9-3 On March 1, 2017, Blossom Company acquire reaestate, on which it planned to construct a small office building, by paying $86,000 in cash. An old warehouse on the property was demolished at a cost of $9,400; the salvaged materials were sold for $1,940. Additional expenditures before construction began included $1,440 attorney's fee for work concerning the land purchase, $5,100 real estate broker's fee, $8,940 architect's fee, and $15,200 to put in driveways and a parking lot (a) Determine the amount to be reported as the cost of the land Cost of land Click if you would like to Show Work for this question: Open Show Work