Land is purchased for $543,710. Back taxes paid by the purchaser were $8,500; total costs to demolish an existing building and clear the land were $215,000, and costs of paving the parking lot were $106,000. What is the cost of the land?

Question

Quizplus · Accepted Answer

To find the cost of the land, we need to add the purchase price of the land to all additional costs, including back taxes, demolition and clearing costs, and paving costs. 
Cost of land = Purchase price + Back taxes + Demolition and clearing costs + Paving costs 
Cost of land = $543,710 + $8,500 + $215,000 + $106,000 
Cost of land = $873,210 
Therefore, the cost of the land is $873,210, which is option D.

Land Is Purchased for $543,710