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Reptile [31]
3 years ago
15

Blossom Clinic purchases land for $450000 cash. The clinic assumes $4000 in property taxes due on the land. The title and attorn

ey fees totaled $3200. The clinic had the land graded for $6100. What amount does Blossom Clinic record as the cost for the land?
Business
1 answer:
Keith_Richards [23]3 years ago
5 0

Answer:

The answer is: The cost of the land is $457,200

Explanation:

To determine the total cost of the land acquired by the Blossom Clinic, we must add the purchase price, unpaid property taxes and legal fees.

Cost of the land = $450,000 + $4,000 + $3,200 = $457,200

Land grading is not included since it is a type of land improvement.

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