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Question - On March 1, 2022, Crane Company acquired real estate, on which it planned to construct a small office building, by paying $86,500 in cash. An old warehouse on the property was demolished at a cost of $9,500; the salvaged materials were sold for $1,960. Additional expenditures before construction began included $1,460 attorney's fee for work concerning the land purchase, $5,150 real estate broker's fee, $8,960 architect's fee, and $15,300 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.
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Oliver wanted to repay his loan of $12,000, which he borrowed from National Australia Bank (NAB). advise Oliver and his employer of the tax consequences
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