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Question - Company incurred the following costs associated with the purchase of a piece of land that will use to re build an office building.
Sale price of land $400,000
Sale of salvage parts already on land $20,000
Demolition of old building $30,000
Groundbreaking ceremony (food and supplies) $1,500
Land preparation and leveling $7,500
What amount should be recorded for the purchase of the land?
Read the chapter opener about Marco Giannini and his company, Dogswell. Marco is considering building a new, massive warehousing center to make his business.
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