Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. 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, assumed property taxes, title and attorney fees, and grading costs. Therefore, $130,000 + $1,500 + $1,000 + $2,200 = $134,700.

Gagner Clinic Purchases Land for $130,000 Cash