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V125BC [204]
4 years ago
12

Land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct

a fence, and a legal fee of $8,500. What is the cost of the land
Business
1 answer:
KonstantinChe [14]4 years ago
7 0

Answer:

The answer is $282,200

Explanation:

The cost of an asset includes the purchase price (cost of acquisition) and the cost neccessary to bring it usage.

For example, for cost of acquiring a machinery, the purchase price minus any trade discount plus cost of transportation, plus any tax paid on acquisition plus cost of installation etc.

But for the acquisition of land, all the cost except the cost of fence of the land will be considered.

So we have:

Purchase price. $256,000

Broker's fee. $15,300

Survey fee. $2,400

Legal fee $8,500

Cost of the land. $282,200

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