Determine the cost of land to be reported on balance sheet

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Determining Cost of Land

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 in cash and giving a short-term note for $261,000. Legal fees paid were $1,955, delinquent taxes assumed were $12,200, and fees paid to remove an old building from the land were $20,000. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $890,700 to construct a new warehouse.

Problem 1: Determine the cost of the land to be reported on the balance sheet.

Reference no: EM132952347

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