Reference no: EM132749042

Question: February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $122,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were:

Item                                             Amount

Demolition dilapidated building         $2,000

Architect Fees                                $11,250

Legal Fees - for title search               $1,350

Interest During Active Construction Period $5,025

Real estate transfer tax                             $825

Construction Costs                                $605,000

Using this information, how much should be recorded as the cost of the land?