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Doss [256]
4 years ago
7

Merchant Company purchased property for a building site The costs associated with the property were:

Business
1 answer:
In-s [12.5K]4 years ago
6 0

Answer:

d. $216,200 to Land; $0 to Building.

Explanation:

<u>Calculation of Cost of the land  </u>

Purchase price                               $191,000

Real estate commissions               $16,600

Legal fees                                       $2,400

Expenses of clearing the land       $3,600

Expenses to remove old building  <u>$2,600</u>

Cost of the land                              <u>$216,200</u>

<u></u>

<u>Calculation of Cost of Building</u>

0.

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