On March 1, 2022, Pharoah Company acquired real estate, on which it planned to construct a small office building, by paying $87,000 in cash. An old warehouse on the property was demolished at a cost of $8,900; the salvaged materials were sold for $3,900. Additional expenditures before construction began included $2,200 attorneyâs fee for work concerning the land purchase, $5,400 real estate brokerâs fee, $8,200 architectâs fee, and $14,200 to put in driveways and a parking lot. Required:
Determine the amount to be reported as the cost of the land.

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of