Soccer Wholesale purchased land and a warehouse for $800,000. In addition to the purchase price, Soccer Wholesale made the following expenditures related to the acquisition: broker's commission, $48,000; title insurance, $3,000; and miscellaneous closing costs, $8,000. The warehouse is immediately demolished at a cost of $80,000 in anticipation of building a new warehouse.
Required:
Determine the amount Soccer Wholesale should record as the cost of the land.

Question

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The Answer of Soccer Wholesale purchased land and a warehouse for $800,000. In addition to the purchase price, Soccer Wholesale made the following expenditures related to the acquisition: broker's commission, $48,000; title insurance, $3,000; and miscellaneous closing costs, $8,000. The warehouse is immediately demolished at a cost of $80,000 in anticipation of building a new warehouse.
Required:
Determine the amount Soccer Wholesale should record as the cost of the land.

Soccer Wholesale Purchased Land and a Warehouse for $800,000