Question

Bramble Clinic purchases land for $174800 cash. The clinic assumes $1700 in property taxes due on the land. The title and attorney fees totaled $900. The clinic has the land graded for $2500. What amount does Bramble Clinic record as the cost for the land?

Answer 1

$177,400

Step-by-step explanation:

The computation of the cost of the land is shown below:

= Purchase value of land for cash + property taxes + title and attorney fees

= $174,800 + $1,700 + $900

= $177,400

Simply we added the purchase value of land, property taxes and the title and attorney fees.

The grading cost should not be considered for the cost of the land.