The company acquired an adjacent lot to construct a new warehouse, paying $30,00

Question

The company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short term note for $270,000. Legal fees of $1,425 were paid. Delinquent taxes assumed were $12,000, and fees paid to remove an old bldg from the land came to $18,500.
On top of all that, Materials salvaged from the demolition of said bldg were sold for $4,500, and a contractor was paid $910,000 to construct the new warehouse.

So trying to determine the actual cost of the land to be reported is where I am getting stuck. Help would be greatly appreciated.

Explanation / Answer

Calculating the total cost of the land: Cash                             $30,000 Short-term notes           $270,000 Legal fees                      $1,425 Delinquent taxes             $12,000 Removal costs                $18,500 ----------------------------------- Sub total                        $331,925 (-) Salvaged materials     $4,500 ----------------------------------- Total cost of land           $327,425 ---------------------------------- Therefore, the total cost of land is $327,425.

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