Reference no: EM133168686

Question - Determining Cost of Land - On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $43,000 in cash and giving a short-term note for $314,000. Legal fees paid were $1,705, delinquent taxes assumed were $11,900, and fees paid to remove an old building from the land were $19,500. Materials salvaged from the demolition of the building were sold for $5,400. A contractor was paid $1,085,300 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.