Wilson co. purchased land as a factory site for $900,000. wilson paid $80,000 to tear down two buildings on the land. salvage was sold for $5,400. legal fees of $3,480 were paid for title investigatio

Wilson co. purchased land as a factory site for $900,000. wilson paid $80,000 to tear down two buildings on the land. salvage was sold for $5,400. legal fees of $3,480 were paid for title investigation and making the purchase. architect’s fees were $31,200. title insurance cost $2,400, and liability insurance during construction cost $2,600. excavation cost $10,440. the contractor was paid $2,800,000. an assessment made by the city for pavement was $6,400. interest costs during construction were $170,000. reference: ref 10-1 the cost of the land that should be recorded by wilson co. is