Robin Company Acquires a Piece of Land on Which It

Multiple Choice

Robin Company acquires a piece of land on which it intends to build a factory to produce its primary product. The land is listed for sale at $460,000, but Robin Company's real estate broker is able to negotiate a sales price of $420,000. The land contains an old office building that is razed at a cost of $25,000 ($29,000 in costs less $4,000 proceeds from salvaged materials) . Robin Company pays a commission to the real estate broker of $23,000 and an attorney's fee of $6,000. On its statement of financial position at December 31, 2014, what amount will Robin Company record as the cost of the land?

A) $489,000
B) $445,000
C) $474,000
D) $514,000