Gagner Clinic purchases land for $175,000 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 is the purchase price ($175,000) plus any additional costs incurred to acquire and prepare the land for use. This includes property taxes ($1,500), title and attorney fees ($1,000), and grading expenses ($2,200). Therefore, the total cost of the land is $175,000 + $1,500 + $1,000 + $2,200 = $179,700, which is option C.

Gagner Clinic Purchases Land for $175,000 Cash