Question

Coronado Industries purchased land as a factory site for $1350000. Coronado paid $116000 to tear down two buildings on the land. Salvage was sold for $8300. Legal fees of $5160 were paid for title investigation and making the purchase. Architect's fees were $46600. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15500. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $260000. The cost of the land that should be recorded by Coronado Industries is

Answer 1

The cost of the land that should be recorded by Coronado Industries is $1,492,860.

Step-by-step explanation:

Cost of Land = Purchase Value + Cost Incurred to Tear Down 2 Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost

Cost of Land = $1,350,000 + $116,000 + $8,300 + $5,160 + $3,500 + $9,1900

Cost of Land = $1,492,860

Thus, the cost of the land that should be recorded by Coronado Industries is $1,492,860