On March 1, 2021, Sage Hill Company acquired real estate on which it planned to construct a small office building. The company paid $100,000 in cash. An old warehouse on the property was razed at a cost of $7,900; the salvaged materials were sold for $1,800. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $4,100 real estate broker's fee, $8,200 architect's fee, and $13,600 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of the land

On March 1, 2021, Sage Hill Company acquired real estate on which it planned to construct a small office building. The company paid $100,000 in cash. An old warehouse on the property was razed at a cost of $7,900; the salvaged materials were sold for $1,800. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $4,100 real estate broker's fee, $8,200 architect's fee, and $13,600 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of the land

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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