planned to construct a small office building. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $8,300; the salvaged materials were sold for $1,300. Additional expenditures before construction began included $1,500 attorney’s fee for work concerning the land purchase, $5,600 real estate broker’s fee, $7,800 architect’s fee, and $14,000 to put in driveways and a parking lot.
What is the amount to be reported as the cost of the land?
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