Answer:
Balance in the land $72,500
Explanation:
The computation of the balance in the land account is as follows;
Purchase cost $430,000
Add: Demolition of existing building on site $69,000
Add: Legal and other fees to close escrow $12,400
Less: Proceeds from the sale of demolition scrap -$8,900
Balance in the land $72,500
We simply applied the above formula so that the correct value could come
And, the same is to be considered
