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Question - On March 1, 2003, Chowdhury Company acquired land for which it paid $90,000 cash. It planned to construct a small office building. An old warehouse on the property was torn down at a cost of $6,600. The residual materials were sold for $1,700. Additional costs before construction began included a $1,100 legal fee for work concerning the land purchase, a $7,800 architect's fee, and $14,000 to put in driveways and a parking lot.
Required -
a) Determine the amount to be reported as the cost of the land.
b) For each cost not used in part (a), indicate the account to be debited.
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