On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $33,000 in cash and giving a short-term note for $299,000. Legal fees paid were $1,805, delinquent taxes assumed were $10,800, and fees paid to remove an old building from the land were $19,000. Materials salvaged from the demolition of the building were sold for $5,000. A contractor was paid $1,009,300 to construct a new warehouse