Burke Company purchases land for $100,000 cash. Burke assumes $2,500 in delinquent property taxes due on the land as part of the

Question

3 years ago

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Burke Company purchases land for $100,000 cash. Burke assumes $2,500 in delinquent property taxes due on the land as part of the

purchase. The title and attorney fees totaled $1,000. Burke has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Burke record as the cost for the land

Business

1 answer:

Natali [406] · Answer 1 · 2022-11-16T05:55:02+03:00

Answer: $105700

Explanation:

The amount that'll be paid as the cost of the land will be calculated as:

Land purchase = $100,000

Add: Property tax = $2500

Add: Fees = $1000

Add: Grading = $2200

Total = $105700

Therefore, the amount that'll be paid as the cost of the land will be $105700