Fresh Veggies, Inc. (FVI) purchases land and a warehouse for $ 490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker’s commission, $ 29,000; title insurance, $ 1,900; and miscellaneous closing costs, $ 6,000. The warehouse is immediately demolished at a cost of $ 29,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.
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