On March $1,2022,$ Boyd Company acquired real estate, on which it planned to construct a small office building, by paying $$80,000$ in cash. An old warehouse on the property was demolished at a cost of $$8,200$; the salvaged materials were sold for $$1,700.$ Additional expenditures before construction began

included $$1,900$ attorney$$s fee for work concerning the land purchase, $$5,200$ real estate broker$$s fee, $$9,100$ architect$$s fee, and $$14,000$ to put in driveways and a parking lot.

Instructions

a$.$ Determine the amount to be recorded as the cost of the land.

b$.$ For each cost not used in part $($a$),$ indicate the account to be debited.

Understand depreciation concepts