On March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $80.500 in cash. An old warehouse on the property was demolished at a cost of $8,300; the salvaged materials were sold for $1.720. Additional expenditures before construction began included $1.220 attorney's fee for work concerning the land purchase, $4,550 real estate broker's fee, $8.720 architect's fee, and $14,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.

On March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $80.500 in cash. An old warehouse on the property was demolished at a cost of $8,300; the salvaged materials were sold for $1.720. Additional expenditures before construction began included $1.220 attorney's fee for work concerning the land purchase, $4,550 real estate broker's fee, $8.720 architect's fee, and $14,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the 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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