Castille Corp. purchases, for $600,000, land upon which a building and a dilapidated shed are situated. Castille plans to use th
e building as-is for operations but immediately razes the shed at a cost of $5,000 minus scrap recovery of $1,000. A recent tax appraisal of the property allocated $100,000 to the land and $400,000 to the building. In the entry to record the acquisition of the property, at what amount will Castille debit Land?
a. $124,000
b. $120,800
c. $120,000
d. $100,000
This kind of agreement is called EXCLUSIVE AGENCY. Exclusive agency is a contractual agreement under which the listing broker acts as an agent and the owner agree to pay a commission to him if the property is sold through the effort of any person with the exception of the owner of the property.
