Cordelia Corp acquires land for $120,000 cash. Additional costs are as follows: Cordelia will record the cost of the land as

Question

Cordelia Corp acquires land for $120,000 cash. Additional costs are as follows:  Cordelia will record the cost of the land as

Quizplus · Accepted Answer

The cost of the land should be recorded at $124,880 because it includes the purchase price of $120,000 plus additional costs such as closing costs ($4,000), title search and insurance fees ($1,500), and survey fees ($380). These costs are all directly related to the acquisition of the land and should be added to the purchase price to determine the land's total cost.

Cordelia Corp Acquires Land for $120,000 Cash