Problem
On August 21, Oldham Industries bought 100 acres of land in order to expand its operations. The purchase price was $375,000. In addition, Oldham paid $30,000 in taxes and fees, $27,000 to remove two existing buildings, and $50,000 to grade and fill the land before it could be used. Oldham sold materials salvaged from the two buildings for $25,000.
Calculate the amount that Oldham would record as the cost of the land and prepare the journal entry to record the purchase?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.