On July 1, 20X7 Investment Entity (IE) paid $440,000 in cash for a building. IE acquired the building with the intent to earn lease rental income. IE also paid $5,000 in property transfer taxes and $4,000 for direct legal costs to complete the purchase. What amount should IE record as the initial cost of the building?

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The Answer of On July 1, 20X7 Investment Entity (IE) paid $440,000 in cash for a building. IE acquired the building with the intent to earn lease rental income. IE also paid $5,000 in property transfer taxes and $4,000 for direct legal costs to complete the purchase. What amount should IE record as the initial cost of the building?

On July 1, 20X7 Investment Entity (IE) Paid $440,000 in Cash