Question
On March 1, 2017, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash.
On March 1, 2017, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $10,400; the salvaged materials were sold for $2,700. Additional expenditures before construction began included $1,600 attorneys fee for work concerning the land purchase, $5,500 real estate brokers fee, $7,400 architects fee, and $13,000 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.
Cost of land | $ |
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