Question

On December 1, 2020, Bramble Corp. purchased a tract of land as a factory site for $805000. The old building on the property was razed, and salvaged materials resulting from demolition were sold. Additional costs incurred and salvage proceeds realized during December 2020 were as follows: Cost to raze old building $76000 Legal fees for purchase contract and to record ownership 10600 Title guarantee insurance 17100 Proceeds from sale of salvaged materials 7600 In Bramble's December 31, 2020 balance sheet, what amount should be reported as land?

Answer 1

The answer is $901100

Step-by-step explanation:

The amount that should be reported as land is =purchase price + renovation costs + legal fees + insurance - salvage

= $805000 + $76000+ 10600+17100 - 7600= $901100