Alpha Co. purchased land as a factory site for $800,000. Alpha paid $100,000 to tear down a building on the land. Brokerage fees of $3,000 were paid for acquisition of land and making the purchase. Architect's fees were $20,000. Removal of old building cost $8,000, and liability insurance during construction cost $4,000. Excavation cost $20,000. The contractor was paid $2,000,000. An assessment made by the city for drainage was $20,000. Land improvements (permanent) were $70,000. 

The cost of the land that should be recorded by Alpha Co. is?

Answer rating: 100% (QA)

Here is the breakdown of the costs Purchase price of land 800000 Cost of tear... View the full answer