McCoy’s Fish House purchases a tract of land and an existing building for $ 1,000,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $ 3,000. The company also pays $ 14,000 in property taxes, which includes $ 9,000 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $ 5,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $ 50,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $ 5,000 and pays an additional $ 11,000 to level the land.
Determine the amount McCoy’s Fish House should record as the cost of the land.