On July 1, 2024, a company purchased a $550,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds during 2024 as follows:Demolition of existing building on site$ 72,000Legal and other fees to close escrow12,400Proceeds from sale of demolition scrap9,800What would be the balance in the land account as of December 31, 2024?

The objective of the question is to calculate the balance in the land account as of December 31, 2024. This involves adding the purchase price of the land to the costs incurred for the demolition of the existing building and the legal fees, and then subtracting the proceeds from the sale of the demolition scrap.First, we start with the purchase price of the land, which is $550,000.Next, we add the cost of the demolition of the existing building on the site, which is $72,000. This gives us a total of $550,000 + $72,000 = $622,000.Then, we add the legal and other fees to close escrow, which is $12,400. This gives us a total of $622,000 + $12,400 = $634,400.Finally, we subtract the proceeds from the sale of the demolition scrap, which is $9,800. This gives us a total of $634,400 - $9,800 = $624,600.Therefore, the balance in the land account as of December 31, 2024, would be $624,600.The balance in the land account as of December 31, 2024, is calculated by adding the purchase price of the land, the cost of the demolition of the existing building, and the legal fees, and then subtracting the proceeds from the sale of the demolition scrap. The final balance in the land account is $624,600.