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A company purchased land for $87000 cash. Real estate brokers' commission was $3000 and $10000 was spent for demolishing an old building on the land
A company purchased land for $87000 cash. Real estate brokers' commission was $3000 and $10000 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from the salvage of the demolished building was $1400. Under the historical cost principle, the cost of land would be recorded at $87000. $98600. $100000. $95600
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