Burke Company purchases land for $90,000 cash. Burke assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 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 ($90,000), assumed property taxes ($2,500), title and attorney fees ($1,000), and grading costs ($2,200). The paving of the parking lot ($10,000) is not included in the land cost. Total: $90,000 + $2,500 + $1,000 + $2,200 = $95,700.

Burke Company Purchases Land for $90,000 Cash