A company purchased land for $120,000 cash; $7,000 was spent to demolish an old building on the land before construction of a new building could start; and $1,500 was received for material salvaged from the old building.The cost of the land would be recorded at

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Quizplus · Accepted Answer

The cost of the land would be recorded at $125,500, which is calculated by adding the purchase price of the land ($120,000) and the cost to demolish the old building ($7,000), then subtracting the amount received for the salvaged material ($1,500). So, $120,000 + $7,000 - $1,500 = $125,500.

A Company Purchased Land for $120,000 Cash; $7,000 Was Spent