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Seiler Co.purchased land as a factory site for $600,000.Seiler paid $60,000 to tear down two buildings on the land.Salvage was sold for $5,400.Legal fees of $3,480 were paid for title investigation and making the purchase.Architect's fees were $31,200.Title insurance cost $2,400, and liability insurance during construction cost $2,600.Excavation cost $10,440.The contractor was paid $2,200,000.An assessment made by the city for pavement was $6,400.Interest costs during construction were $170,000.
-The cost of the land that should be recorded by Seiler Co.is

Question

Use the following information for questions 
Seiler Co.purchased land as a factory site for $600,000.Seiler paid $60,000 to tear down two buildings on the land.Salvage was sold for $5,400.Legal fees of $3,480 were paid for title investigation and making the purchase.Architect's fees were $31,200.Title insurance cost $2,400, and liability insurance during construction cost $2,600.Excavation cost $10,440.The contractor was paid $2,200,000.An assessment made by the city for pavement was $6,400.Interest costs during construction were $170,000.
-The cost of the land that should be recorded by Seiler Co.is

Quizplus · Accepted Answer

The cost of the land includes the purchase price, demolition costs minus salvage, legal fees, and title insurance. Therefore, $600,000 + $60,000 - $5,400 + $3,480 + $2,400 = $660,480.

Use the Following Information for Questions