Determine the cost of land to be reported on balance sheet

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Question

The falcon company acquired an adjacent lot to construct a new warehouse, paying $40,000 and giving a short term note for $410,000. Legal fees paid were $13,275, delinquent taxes assessed were $14,500 and fees paid to remove an old building from the land were $15,800 materials salvaged from the demolition of the building were sold for $6800. A contractor was paid $890,000 to construct the new warehouse.

Determine the cost of the land to be reported on the balance sheet?

Reference no: EM132321931

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