Reference no: EM133049937

Question - On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $25,000 in cash and giving a short-term note for $283,000. Legal fees paid were $2,250, delinquent taxes assumed were $12,600, and fees paid to remove an old building from the land were $16,500. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $936,300 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.