On december 1, 2020, hogan co. purchased a tract of land as a factory site for $780,000. the old building on the property was razed, and salvaged materials resulting from demolition were sold. additional costs incurred and salvage proceeds realized during december 2020 were as follows: cost to raze old building $70,000legal fees for purchase contract and to record ownership $10,000title guarantee insurance $16,000proceeds from sale of salvaged materials $8,000required: 1. in hogan’s december 31, 2020 balance sheet, what amount should be reported as land? 2. land was purchased to be used as the site for the consruction of a plant. a building on the property was sold and removed by the buyer so that construction on the plant could begin. the proceeds from the sale of the building should be: a. classified as other income. b. deducted from the cost of the land. c. netted against the costs to clear he land and expensed as incurred. d. netted against the costs to clear the land and amortized over the life of the plant.