On June 30, Year 1, Bluebird Inc. purchased a $ 750,000 tract of land for a new regional office. Costs related to purchasing the property and preparing the land for construction included:
Legal fees …………………………………. $ 32,000
Title guarantee insurance…………………. 15,000
Cost to clear timber from land…………… 18,000
Proceeds from sale of timber …………….. 7,000
Excavation costs for office building……... 20,000
In its December 30, Year 1 balance sheet, Boyd should report a balance in the land account of:
a. $ 797,000
b. $ 808,000
c. $ 815,000
d. $ 828,000