Question

The following expenditures were incurred by McCoy Company in purchasing land:cash price $61,440, accrued taxes $4,720, attorney’s fees $2,660, real estate broker’s commission $3,360, and clearing and grading $4,060.What is the cost of the land?

Answer 1

Answer:

$76,240

Explanation:

Given that,

cash price = $61,440,

accrued taxes = $4,720,

attorney’s fees = $2,660,

real estate broker’s commission = $3,360, and

clearing and grading = $4,060

Cost of the land:

= cash price + accrued taxes + attorney’s fees + real estate broker’s commission + clearing and grading

= $61,440 + $4,720 + $2,660 + $3,360 + $4,060

= $76,240