etermining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $33,000 and giving a short-term note for $248,000. Legal fees paid were $1,570, delinquent taxes assumed were $9,200, and fees paid to remove an old building from the land were $20,800. Materials salvaged from the demolition of the building were sold for $4,200. A contractor was paid $854,200 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
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Determining Cost of Land

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $33,000 and giving a short-term note for $248,000. Legal fees paid were $1,570, delinquent taxes assumed were $9,200, and fees paid to remove an old building from the land were $20,800. Materials salvaged from the demolition of the building were sold for $4,200. A contractor was paid $854,200 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet.

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