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On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 and giving a short-term note for $324,000. Legal fees paid were $1,535, delinquent taxes assumed were $11,600, and fees paid to remove an old building from the land were $22,400. Materials salvaged from the demolition of the building were sold for $5,300. A contractor was paid $1,082,200 to construct a new warehouse.
Problem 1: Determine the cost of the land to be reported on the balance sheet.
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