Rose Corp. purchased land for $77,000. Additionally, Rose paid title insurance of $700, a commission of $7,000, and back taxes due in the amount of $1,000. To ready the land for construction, Rose paid $3,000 to remove an unwanted building, $6,000 to level and grade the property, and $12,000 for paving. The cost of the company's land is _______, and the land improvements are _______.

Question

Quizplus · Accepted Answer

The cost of the land includes the purchase price, title insurance, commission, back taxes, and costs to remove the building and level the land. The paving is considered a land improvement. Therefore, the land cost is $77,000 + $700 + $7,000 + $1,000 + $3,000 + $6,000 = $94,700, and the land improvements are $12,000.

Rose Corp Purchased Land for $77,000