Land is purchased for $600,000.Back taxes paid by the purchaser were $8,500; total costs to demolish an existing building were $12,000 and the cost to clear the land was $15,000.The cost of paving the parking lot was $100,000.What is the cost of the land and land improvements?

Question

Quizplus · Accepted Answer

The cost of the land is $600,000, and the total cost of the land improvements is:

$8,500 (back taxes) + $12,000 (demolition) + $15,000 (clearing) + $100,000 (paving) = $135,500

Therefore, the total cost of the land and land improvements is $600,000 + $135,500 = $735,500.

Option B is the correct answer, as it reflects the total cost of the land and land improvements.

Land Is Purchased for $600,000