Reference no: EM132682121

Problem - Discount Delivery Company acquired an adjacent lot to construct a new warehouse, paying $25,000 and giving a short-term note for $300,000. Legal fees paid were $2,100, delinquent taxes assumed were $14,000, and fees paid to remove an old building from the land were $9,000. Materials salvaged from the demolition of the building were sold for $3,500. A contractor was paid $800,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.