Question 15 of 40
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On December 1, 20X5, East Co. purchased a tract of land as a factory site for $300,000. 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 20X5 were as follows:
Cost to raze old building
$25,000
Legal fees for purchase contract and to record ownership
5,000
Title guarantee insurance
6,000
Proceeds from sale of salvaged materials
4,000
In East's December 31, 20X5 Balance Sheet, what amount should be reported as land?
? $336,000
? $311,000
? $321,000
? $332,000
