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Mechanical Engineers, Inc. purchased a parcel of land to be used as a parking lot for $260,000 and also made the following payments: ' $2,100 for accrued taxes at the time of the purchase. I $10,900 for grading and clearing of the land. - $1,000 for legal fees. ' $8,000 for real estate and settlement fees. ' $50,000 for removal of an old building from the land. ' $75,000 for construction of driveways and a parking lot. Before the old building was demolished, Mechanical Engineers, inc. removed and sold copper pipe and antique stairwells and ?xtures from the old building for $10,000.
Problem 1: Based on this information, at what amount should Mechanical Engineers, Inc. record the land acquisition in the land account?
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