Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $38,000 and giving a short-term note for $247,000. Legal fees paid were $1,520, delinquent taxes assumed were $14,400, and fees paid to remove an old building from the land were $20,000. Materials salvaged from the demolition of the building were sold for $4,300. A contractor was paid $866,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Determining Cost of Land
Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $38,000 and giving a short-term note for $247,000. Legal fees paid were
$1,520, delinquent taxes assumed were $14,400, and fees paid to remove an old building from the land were $20,000. Materials salvaged from the demolition of the
building were sold for $4,300. A contractor was paid $866,400 to construct a new warehouse.
Determine the cost of the land to be reported on the balance sheet.
Transcribed Image Text:Determining Cost of Land Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $38,000 and giving a short-term note for $247,000. Legal fees paid were $1,520, delinquent taxes assumed were $14,400, and fees paid to remove an old building from the land were $20,000. Materials salvaged from the demolition of the building were sold for $4,300. A contractor was paid $866,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
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