Burke Company purchases land for $180,000 cash.Burke assumes $5,000 in property taxes due on the land.The title and attorney fees totaled $2,000.Burke has the land graded for $4,400.They paid $20,000 for paving of a parking lot.What amount does Burke record as the cost for the land?

Question

Quizplus · Accepted Answer

The cost of the land includes the purchase price, assumed property taxes, title and attorney fees, and grading costs. Therefore, $180,000 + $5,000 + $2,000 + $4,400 = $191,400. The paving of the parking lot is not included in the land cost.

Burke Company Purchases Land for $180,000 Cash