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timurjin [86]
3 years ago
13

Lorek company acquires land for $160,000 cash. additional costs are as follows: removal of shed, $500; filling and grading, $2,0

00; salvage value of lumber of shed, $120; broker commission, $6,000; paving of parking lot, $15,500; closing costs, $1,000. lorek company should record the acquisition cost of the land as
Business
1 answer:
hoa [83]3 years ago
8 0
$160,000 + $6,000 + $1,000 = $167,000. I don’t believe that the removal of the shed, filling and grading, or paving the parking lot would be considered part of the acquisition itself, so those values are there just to throw you off from the correct answer.
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Answer:

The solution according to the given query is provided below.

Explanation:

The given question seems to be incomplete. The attachment of the complete query is provided below.

Now,

The additional investment will be:

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By putting the values, we get

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= 7,000

Now,

The drawings will be:

= Ending \ owner's \ equity-Beginning \ owner's \ equity+Additional \ investment-Net \ income

By putting the values, we get

= 130000-80000-25000-40000

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Answer:

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Answer:

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