On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in cash and giving a short-term note for $269,000. Legal fees paid were $1,480, delinquent taxes assumed were $11,700, and fees paid to remove an old building from the land were $20,300. Materials salvaged from the demolition of the building were sold for $4,700. A contractor was paid $942,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in cash and giving a short-term note for $269,000. Legal fees paid were $1,480, delinquent taxes assumed were $11,700, and fees paid to remove an old building from the land were $20,300. Materials salvaged from the demolition of the building were sold for $4,700. A contractor was paid $942,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 45P

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