DJG Corporation purchased land in order to build new corporate headquarters for a purchase price of $758,000. The lawyers charged $2,500 to handle the legal aspects of the purchase. Closing costs paid by DJG amounted to $15,160. There was an old factory and warehouse on the property that cost DJG $7,500 to have removed. In addition, CSB Construction charged the corporation $1,800 to grade the property to ensure proper drainage and an additional $15,800 build a drive, parking lot, and walkways. What amount should be recorded as land? What other account(s) should be increased and for what amount(s)?

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The Answer of DJG Corporation purchased land in order to build new corporate headquarters for a purchase price of $758,000. The lawyers charged $2,500 to handle the legal aspects of the purchase. Closing costs paid by DJG amounted to $15,160. There was an old factory and warehouse on the property that cost DJG $7,500 to have removed. In addition, CSB Construction charged the corporation $1,800 to grade the property to ensure proper drainage and an additional $15,800 build a drive, parking lot, and walkways. What amount should be recorded as land? What other account(s) should be increased and for what amount(s)?

DJG Corporation Purchased Land in Order to Build New Corporate