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Question:
On March 1, 2014, Rollinger Company acquired real estate on which it planned to build a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $9,400; the salvaged materials were sold for $1,700. Extra expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $5,000 real estate broker's fee, $7,800 architect's fee, and $12,700 to put in driveways and a parking lot.
Evaluate the amount to be reported as the cost of the land
What is the cash break-even level of output for this project
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