Question

Blossom Company purchases land for $150000 cash. Blossom assumes $5200 in property taxes due on the land. The title and attorney fees totaled $2000. Blossom has the land graded for $3900. They paid $24000 for paving of a parking lot. What amount does Blossom record as the cost for the land?

Answer 1

Answer:

Blossom record $161,100 as cost of land.

Explanation:

Here, we are to calculate amount recorded as the cost of the land purchased by Blossom company.

We proceed mathematically;

From the question;

Calculation of land cost = cash payment + property tax value + Title and attorney fees + Grading cost

Cost of land = 150,000 + 5,200 + 2,000 + 3,900 = $161,100

Blossom record $161,100 as cost of land.