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Determine Cost of Land Four Corners Delivery Company acquired an adjacent lot to construct a new warehouse, paying $200,000 and giving a short-term note for $375,000. Legal fees paid were $6,000, delinquent taxes assumed were $4,100, and fees paid to remove an old building from the land were $15,500. Materials salvaged from the demolition of the building were sold for $2,600. A contractor was paid $900,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
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