Question

On March 1, 2012, Enrique Company acquired real estate, on which it planned to construct a small office building, by paying $90,504 in cash. An old warehouse on the property was demolished at a cost of $7,646; the salvaged materials were sold for $1,633. Additional expenditures before construction began included $1,267 attorney's fee for work concerning the land purchase, $4,702 real estate broker's fee, $9,525 architect's fee, and $14,146 to put in driveways and a parking lot.

Determine the amount to be reported as the cost of the land.