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On December 1, 2019, Dunking Co. purchased a tract of land as a factory site for €800,000. The old building on the property was razed, and salvaged materials resulting from demolition were sold. Additional costs incurred and salvage proceeds realized during December 2019 were as follows:
Cost to raze old building €70,000Legal fees for purchase contract and to record ownership €10,000Title guarantee insurance €16,000Proceeds from sale of salvaged materials €8,000
Problem 1: In Dunking's December 31, 2019 statement of financial position, what amount should be reported as land?
Option 1: €896,000.Option 2: €888,000.Option 3: €826,000.Option 4: €862,000.
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