Determine the amount to be reported as the cost of the land

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Reference no: EM131294269

On March 1, 2017, Pharoah Company acquired real estate, on which it planned to construct a small office building, by paying $83,000 in cash. An old warehouse on the property was demolished at a cost of $8, 800; the salvaged materials were sold for $1, 820. Additional expenditures before construction began included $1, 320 attorney's fee for work concerning the land purchase, $4, 800 real estate broker's fee, $8, 820 architect's fee, and $14, 600 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.

Reference no: EM131294269

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Determine the amount to be reported as the cost of the land : On March 1, 2017, Pharoah Company acquired real estate, on which it planned to construct a small office building, by paying $83,000 in cash. An old warehouse on the property was demolished at a cost of $8, 800; the salvaged materials were sold for $1..

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