Reference no: EM132506852

Gwenllian, Inc. purchased land in 2019. An existing structure was demolished, and a new warehouse was constructed on the property in September of 2019. Gwenllian hired construction workers at a rate of $25 per hour to do the construction work (1,680 hours in total).

Warehouse Construction Cost Data

Purchase price - Land                                             $125,000

Cost to remove structure on land                               $10,000

Paving of parking lot                                                   10,000

Proceeds from sale of metal from demolished structure         3,000

Foundation work                                                         15,000

Landscaping costs                                                     12,000

Parking lot lighting                                                     10,000

Direct materials - Warehouse                                   105,000

Electrical/Plumbing contractors                                25,000

Closing costs on land purchase                               5,000

Hourly wage rate - Workers                                      25

Question 1: What is the amount in the Land account related to this construction project?