1. In January 20X5, Yum-Yum purchased land in Nanaimo for $160,000 with the intention of building a new restaurant. Yum-Yum paid $1,300 in legal fees for a title search and the drawing up of the contract. Payment to an engineering firm included $21,000 for the architectural design and $2,000 for a land survey for building preparation. Both the legal fees and the engineering fees have been recorded as professional fees. Yum-Yum also paid $7,000 for land clearing and landfill deposits, which was added to the land account along with the land purchase.
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