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Question - February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $107,000. 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 $2,800
Architect Fees $11,250
Legal Fees - for title search $2,000
Interest During Active Construction Period $5,025
Real estate transfer tax $900
Construction Costs $605,000
Using this information, how much should be recorded as the cost of the land?
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