On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $26,000 in cash...

 

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On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $26,000 in cash and giving a short-term note for $328,000. Legal fees paid were $1,670, delinquent taxes assumed were $10,800, and fees paid to remove an old building from the land were $16,900. Materials salvaged from the demolition of the building were sold for $5,300. A contractor was paid $1,076,200 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $26,000 in cash and giving a short-term note for $328,000. Legal fees paid were $1,670, delinquent taxes assumed were $10,800, and fees paid to remove an old building from the land were $16,900. Materials salvaged from the demolition of the building were sold for $5,300. A contractor was paid $1,076,200 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

Answer rating: 100% (QA)

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