Answer:
$846,200
Explanation:
The computation of the land value that is to be reported on the balance sheet is shown below:
= Purchase value of a tract of land + Cost to raze old building + legal fees incurred + Title guarantee insurance - proceeds from the sale of salvaged materials
= $760,000 + $67,000 + $9,700 + $16,200 - $6,700
= $846,200
The salvage value should be deducted and other values should be added as these are related to the cost of the land
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