Land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct a fence, and a legal fee of $8,500. What is the cost of the land?
A) $256,000.
B) $281,000.
C) $284,600.
D) $282,200.

Question

Quizplus · Accepted Answer

The cost of the land is the purchase price plus the additional costs. Therefore, the cost of the land is:
$256,000 + $15,300 + $2,400 + $1,750 + $8,500 = $284,950.
However, the question asks for the cost of the land, not the total cost including additional fees. Therefore, we subtract the additional fees from the total cost:
$284,950 - $28,950 (additional fees) = $256,000 (cost of the land).
So, the answer is D.

Land Is Purchased for $256,000