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Determining Cost of Land
Intermountain Delivery Company acquired an adjacent lot to construct a new warehouse, paying $100,000 and giving a short-term note for $700,000. Legal fees paid were $5,000, delinquent taxes assumed were $18,500, and fees paid to remove an old building from the land were $12,000. Materials salvaged from the demolition of the building were sold for $4,000. A contractor was paid $950,000 to construct a new warehouse.
Determine the cost of the land to be reported on the balance sheet: ____________
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every single transaction we engage in must be entered into the accounting equation.what is the accounting
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