Land is purchased for $400,000. Back taxes paid by the purchaser were $6900; total costs to demolish an existing building were $13,000 and the cost to clear the land was $18,000. The cost of paving the parking lot was $7200. The cost of land is ________ and the cost of land improvements is ________.

Question

Quizplus · Accepted Answer

The cost of land includes the purchase price, back taxes, demolition, and clearing costs, totaling $437,900. The cost of paving the parking lot is considered a land improvement, totaling $7200.

Land Is Purchased for $400,000