A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and title insurance of $1,000 were also incurred. The $5,500 in property taxes includes $4,200 in back taxes paid by the company on behalf of the seller and $1,300 due for the current year after the purchase date. For what amount should the company record the land?

A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and title insurance of $1,000 were also incurred. The $5,500 in property taxes includes $4,200 in back taxes paid by the company on behalf of the seller and $1,300 due for the current year after the purchase date. For what amount should the company record the land?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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