Determine the amount fvi should record as the cost of land

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Reference no: EM131521255

Question: Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $500,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $30,000; title insurance, $2,000; and miscellaneous closing costs, $5,000. The warehouse is immediately demolished at a cost of $30,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.

Reference no: EM131521255

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