These expenditures were incurred by Carla Vista Co. in purchasing land: cash price $61,440, accrued taxes $4,720, attorney's fees $2,660, real estate broker's commission $3,360, and clearing and grading $4,060. What is the cost of the land? The cost of the land $

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Business

David Ramos

18 June, 12:06

These expenditures were incurred by Carla Vista Co. in purchasing land: cash price $61,440, accrued taxes $4,720, attorney's fees $2,660, real estate broker's commission $3,360, and clearing and grading $4,060. What is the cost of the land? The cost of the land $

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Answers (1)

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Audrey Paul · Answer 1

Cost of land = $76,240

Explanation:

Cost of land = cash price + accrued taxes + attorney's fees + broker's commission + clearing and grading

Cost of land = $61,440 + $4,720 + $2,660 + $3,360 + $4,060

Cost of land = $76,240

Original cost is the total price associated with the purchase of an asset. The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use. These costs include the purchase price and such factors as commissions, transportation, appraisals, warranties and installation and testing. Original cost can be used to value an asset type, including equipment, real estate and security instruments.