Ask Question
4 December, 17:19

Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Elway has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Elway record as the cost for the land? a. $88,200b. $100,700c. $90,700d. $85,000

+1
Answers (1)
  1. 4 December, 19:39
    0
    c. $90,700

    Explanation:

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

    = Purchase cost of land + property taxes + attorney fees + land graded cost

    = $85,000 + $2,500 + $1,000 + $2,200

    = $90,700

    We added the property taxes, attorney fees, and the land graded cost to the purchase cost of the land. We do not include the parking lot expenses
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fees totaled ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers