Financial Accounting: E9-3 On March 1, 2011, Penner Company acquired real estate
E9-3 On March 1, 2011, Penner Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $5,000 real estate broker's fee, $7,800 architect's fee, and $14,000 to put in driveways and a parking lot.
Instructions: a. Determine the amount to be reported as the cost of the land. b. For each cost not used in part (a), indicate the account to be debited.