Determine the amount to be reported as the cost of the land

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Problem - On March 1, 2022, Sandhill Co. acquired real estate, on which it planned to construct a small of?ce building, by paying $85,000 in cash. An old warehouse on the property was demolished at a cost of $9,200; the salvaged materials were sold for $1,900. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $5,000 real estate broker's fee, $8,900 architect's fee, and $15,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.

Reference no: EM132738491

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