On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in cash and giving a short-term note for $308,000. Legal fees paid were $2,110, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $20,400. Materials salvaged from the demolition of the building were sold for $5,200. A contractor was paid $1,061,000 to construct a new warehouse