Answer:
$478,850
Step-by-step explanation:
Calculation to determine what The capitalized cost of the land is:
Using this formula
Capitalized cost of the land = Purchase cost + Old building Demolition + Cost of Title Transfer + Attorney fees + Property taxes paid - Building Scrap value
Let plug in the formula
Capitalized cost of the land= $450,000 + $22,000 + $1,400 + $700 + ($8,000 - $750) - $2,500
Capitalized cost of the land= $450,000 + $22,000 + $1,400 + $700 + $7,250 - $2,500
Capitalized cost of the land= $481,350 - $2,500
Capitalized cost of the land= $478,850
Therefore The capitalized cost of the land is: $478,850