Soccer Wholesale purchased land and a warehouse for $800,000. In addition to the purchase price, Soccer warehouse makes the following expenditures related to the acquistion: broker's commission, $48,000; title insurance, $3,000 and miscellaneous closing costs, $8,000. The warehouse is immediately demolished at a cost of $80,000 in anticipationof building a new warehouse.

a. Determine the amount Soccer Warehouse should record as the cost of the land.

b. Prepare the journal entry to record the purchase of the land - assume a cash transaction.