On March 1, 2025, Crane Company acquired real estate, on which it planned to construct a small office building, by paying $75,500 in cash. An old warehouse on the property was demolished at a cost of $7,300; the salvaged materials were sold for $1,520. Additional expenditures before construction began included $1,020 attorney's fee for work concerning the land purchase, $4,050 real estate broker's fee, $8,520 architect's fee, and $13,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.
On March 1, 2025, Crane Company acquired real estate, on which it planned to construct a small office building, by paying $75,500 in cash. An old warehouse on the property was demolished at a cost of $7,300; the salvaged materials were sold for $1,520. Additional expenditures before construction began included $1,020 attorney's fee for work concerning the land purchase, $4,050 real estate broker's fee, $8,520 architect's fee, and $13,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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On March 1, 2025, Crane Company acquired real estate, on which it planned to construct a small office building, by paying $75,500 in cash. An old warehouse on the property was demolished at a cost of $7,300; the salvaged materials were sold for $1,520. Additional expenditures before construction began included $1,020 attorney's fee for work concerning the land purchase, $4,050 real estate broker's fee, $8,520 architect's fee, and $13,100 to put in driveways and a parking lot.
(a) Determine the amount to be reported as the cost of the land.
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