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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.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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