Question

Land is purchased for​ $300,000. Back taxes paid by the purchaser were​ $8,500; total costs to demolish an existing building were​ $12,000 and the cost to clear the land was​ $22,000. The cost of paving the parking lot was​ $8,100. The cost of land is​ ________ and the cost of land improvements is​ ________.

Answer 1

The land was purchased for $300,000.00; however, after back taxes the total was $308,500.00.

The cost of demolishing an existing building, clearing the land and paving the parking lot had a grand total of $42,100.00.

Answer: The cost of land is​ $308,500 and the cost of land improvements is​ $42,100.