Greer Company purchased land for $256,000.Additional costs include a $15,300 fee to a broker,a survey fee of $2,400,$1,750 to construct a fence,and a legal fee of $8,500.What is the cost of the land?

Question

Quizplus · Accepted Answer

The cost of the land includes the purchase price and all expenses necessary to get the land ready for its intended use. This includes the broker's fee, survey fee, and legal fee, but not the cost to construct a fence, as it is not a necessary cost to prepare the land for use. Therefore, the total cost is $256,000 (purchase price) + $15,300 (broker's fee) + $2,400 (survey fee) + $8,500 (legal fee) = $282,200.

Greer Company Purchased Land for $256,000