On March 1, 2022, Pharoah Company acquired real estate, on which it planned to construct a small office building, by paying $77,500 in cash. An old warehouse on the property was demolished at a cost of $7,700; the salvaged materials were sold for $1,600. Additional expenditures before construction began included $1,100 attorney’s fee for work concerning the land purchase, $4,250 real estate broker’s fee, $8,600 architect’s fee, and $13,500 to put in driveways and a parking lot.

(a) Determine the amount to be reported as the cost of the land.

Cost of land

$Enter a dollar amount

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Solution Cost of land 88950 Explanations Cost of land includes the ... View the full answer