On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 in cash and giving a short-term note for $315,000. Legal fees paid were $2,290, delinquent taxes assumed were $13,700, and fees paid to remove an old building from the land were $18,300. Materials salvaged from the demolition of the building were sold for $5,300. A contractor was paid $1,079,200 to construct a new warehouse