On March 1, 2017, Wildhorse Co. acquired real estate, on which it planned to con

Question

On March 1, 2017, Wildhorse Co. acquired real estate, on which it planned to construct a small office building, by paying $85,500 in cash. An old warehouse on the property was demolished at a cost of $9,300; the salvaged materials were sold for $1,920. Additional expenditures before construction began included $1,420 attorney’s fee for work concerning the land purchase, $5,050 real estate broker’s fee, $8,920 architect’s fee, and $15,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $

Explanation / Answer

Cash paid $85,500 Demolishion cost $9,300 Proceeds from material ($1,920) Attorney’s fee $1,420 Real estate broker’s fee $5,050 Cost of land $99,350

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