Your answer is incorrect. Try again. On March 1, 2017, Sunland Company acquired

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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 $84,000 in cash. An old warehouse on the property was demolished at a cost of $9,000; the salvaged materials were sold for $1,860. Additional expenditures before construction began included $1,360 attorney's fee for work concerning the land purchase, $4,900 real estate broker's fee, $8,860 architect's fee, and $14,800 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land Cost of land 90,260 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

Explanation / Answer

Cash paid $ 84,000 Net cost of removing warehouse ($9,000-$1,860) $    7,140 Attorny's fee $    1,360 Real estate broker's fee $    4,900 Total cost of land $ 97,400

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