Exercise 9-3 Your answer is incorrect. Try again On March 1, 2017, Sunland Compa

Question

Exercise 9-3 Your answer is incorrect. Try again On March 1, 2017, Sunland Company acquired real estate, on which it planned to construct a small office building, by paying $78,500 in cash. An old warehouse on the property was demolished at a cost of $7,900; the salvaged materials were sold for $1,640. Additional expenditures before construction began included $1,140 attorney's fee for work concerning the land purchase, $4,350 real estate broker's fee, $8,640 architect's fee, and $13,700 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land 93530 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Cost of land

Cash paid $78,500 Net cost of removing warehouse ($7,900 – $1,640) $6,260 Attorney's fee $1,140 Real estate broker's fee $4,350 Total $90,250

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