Gagner Clinic purchases land for $175000 cash. The clinic assumes $1500 in property taxes due on the land. The title and attorney fees totaled $1000. The clinic has the land graded for $2200. What amount does Gagner Clinic record as the cost for the land?

Question

Quizplus · Accepted Answer

The cost of the land includes the purchase price of $175,000, the assumed property taxes of $1,500, the title and attorney fees of $1,000, and the cost of grading the land of $2,200. Therefore, the total cost is $179,700 (175,000 + 1,500 + 1,000 + 2,200).

Gagner Clinic Purchases Land for $175000 Cash