Next Day Delivery Company acquired an adjacent lot toconstruct a new warehouse, paying $25,000 and giving a short-termnote for $175,000. Legal fees paid were $1,200, delinquenttaxes assumed were $10,850, and fees paid to remove an old buildingfrom the land were $15,000. Materials salvaged from thedemolition of the building were sold for $2,400. A contractorwas paid $760,000 to construct a new warehouse.
Determine the cost of the land to be reported on the balance sheet.