Question

Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $125,000; real estate commissions, $9,500; delinquent property taxes, $1,800; closing costs, $3,500; clearing and grading of the land, $12,800. Required: Determine the cost of the land.

Answer 1

Answer:

$152,600

Explanation:

The computation of the cost of the land is shown below:

Cost of the land = Purchase price + real estate commissions + delinquent property taxes + closing costs + clearing and grading of the land

= $125,000 + $9,500 + $1,800 + $3,500 + $12,800

= $152,600

We considered all the given information

hence, the cost of the land is $152,600