On december 1, 2016, 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 2016 were as follows:

cost to raze old building $70,000

legal fees for purchase contract and to record ownership $10,000

title guarantee insurance $16,000

proceeds from sale of salvaged materials $8,000

in hogan’s december 31, 2016 balance sheet, what amount should be reported as land?

a. $806,000

b. $842,000

c. $868,000

d. $876,000