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lisov135 [29]
4 years ago
6

Sunland Company acquires land for $77000 cash. Additional costs are as follows.

Business
1 answer:
Inga [223]4 years ago
5 0

Answer:

$91,580

Explanation:

The cost of an asset includes all cos incurred in making the asset available for use. These includes the cost of the item net all discounts, sales tax, freight cost etc.

As long as the cost is necessary for the asset to be available for use, such cost will be capitalized with the cost of the item of asset. Other cost such as maintenance, insurance costs are expensed and not considered as a part of the cost of the asset.

Cost of Land

= $77000 +$500 + $1600 - $170 + $1150 + $11000 + $500

= $91,580

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