On March 1, 2022, Sheridan Company acquired real estate, on which it planned to construct a...

 

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On March 1, 2022, Sheridan Company acquired real estate, on which it planned to construct a small office building, by paying $83,500 in cash. An old warehouse on the property was demolished at a cost of $8,900; the salvaged materials were sold for $1,840. Additional expenditures before construction began included $1,340 attorney's fee for work concerning the land purchase. $4,850 real estate broker's fee, $8,840 architect's fee, and $14,700 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land. $ On March 1, 2022, Sheridan Company acquired real estate, on which it planned to construct a small office building, by paying $83,500 in cash. An old warehouse on the property was demolished at a cost of $8,900; the salvaged materials were sold for $1,840. Additional expenditures before construction began included $1,340 attorney's fee for work concerning the land purchase. $4,850 real estate broker's fee, $8,840 architect's fee, and $14,700 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land. $

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