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Problem 1: On June 30, Year 1, Castille Corp. purchased land for $600,000. A building and a dilapidated shed were situated on the land at the time of purchase. Castille plans to use the building as is for operations but immediately razed the shed at a cost of $5,000, minus scrap recovery of $1,000. A recent tax appraisal of the property allocated $100,000 to the land and $400,000 to the building. At what amount will Castille record the land on the June 30, Year 1, balance sheet?
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