Determine cost of land to be reported on balance sheet


Response to the following problem:

Express Delivery Company acquired an adjacent lot to construct a new warehouse, paying $80,000 and giving a short-term note for $620,000. Legal fees paid were $1,900, delinquent taxes assumed were $9,000, and fees paid to remove an old building from the land were $6,000. Materials salvaged from the demolition of the building were sold for $1,175. A contractor was paid $800,000 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet.

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Cost Accounting: Determine cost of land to be reported on balance sheet
Reference No:- TGS02120558

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