Company A
A company purchased land and incurred the following costs:
$$\begin{array} { l l }
\text { Purchase price } & \$ 500,000 \
\text { Excavation costs } & 50,000 \
\text { Removal of ald building } & 12,500 \
\text { Broker fees } & 10,000 \
\text { Cost of a parking lot } & 25,000
\end{array}$$
-According to the information provided in the figure Company A,what is the cost of the land?

Question

Company A
A company purchased land and incurred the following costs:
 $$\begin{array} { l l } 
\text { Purchase price } & \$ 500,000 \
\text { Excavation costs } & 50,000 \
\text { Removal of ald building } & 12,500 \
\text { Broker fees } & 10,000 \
\text { Cost of a parking lot } & 25,000
\end{array}$$
-According to the information provided in the figure Company A,what is the cost of the land?

Quizplus · Accepted Answer

The cost of the land includes the purchase price, excavation costs, removal of the old building, and broker fees. Therefore, the total cost is $500,000 + $50,000 + $12,500 + $10,000 = $572,500. The cost of the parking lot is not included in the land cost.

Company a A Company Purchased Land and Incurred the Following

Company a
A Company Purchased Land and Incurred the Following