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How much should be recorded as the cost of the land

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Question - February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $97,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were:

Item Amount

Demolition dilapidated building $3,400

Architect Fees $11,250

Legal Fees - for title search $1,000

Interest During Active Construction Period $5,025

Real estate transfer tax $750

Construction Costs $605,000

Required - Using this information, how much should be recorded as the cost of the land?

Reference no: EM132481833

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