On March 1, 2022, Martinez Company acquired real estate on which it planned to construct a small office building, by paying $86,000 in cash. An old warehouse on the property was demolished at a cost of $9,500; the salvaged materials were sold for $3,100. Additional expenditures before construction began included $1.500 attorney's fee for work concerning the land purchase, $4,600 real estate broker's fee, $7,100 architect's fee, and $13,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of land

On March 1, 2022, Martinez Company acquired real estate on which it planned to construct a small office building, by paying $86,000 in cash. An old warehouse on the property was demolished at a cost of $9,500; the salvaged materials were sold for $3,100. Additional expenditures before construction began included $1.500 attorney's fee for work concerning the land purchase, $4,600 real estate broker's fee, $7,100 architect's fee, and $13,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of land

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.12MCE

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