Question

Burke Company purchases land for $180000 cash. Burke assumes $5000 in property taxes due on the land. The title and attorney fees totaled $2000. Burke has the land graded for $4400. They paid $20000 for paving of a parking lot. What amount does Burke record as the cost for the land?

Answer 1

To get the answer, add all the amounts together.
I like to add the first two together, then add that to the third, et cetera so it isn't too much to comprehend at once.
180,000 + 5,000 = 185,000
185,000 + 2,000 = 187,000
187,000 + 4,400 = 191,400
191,400 + 20,000 = 211,400
Burke recored the cost of the land as $191,400. Hope this helps!