Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $ 1,650, property taxes of $6,000, and title insurance of $500. The $6,000 in property taxes includes $4,000 in back taxes paid by Amos, Inc. on behalf of the seller and $ 2,000 due for the current year after the purchase date. Amos also paid a contractor $ 10,000 to tear down a dilapidated building on the property. The capitalized cos of the land is: A. $61, 150 B. $73, 150 C .$ 71, 150 D. $70,650
Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $ 1,650, property taxes of $6,000, and title insurance of $500. The $6,000 in property taxes includes $4,000 in back taxes paid by Amos, Inc. on behalf of the seller and $ 2,000 due for the current year after the purchase date. Amos also paid a contractor $ 10,000 to tear down a dilapidated building on the property. The capitalized cos of the land is: A. $61, 150 B. $73, 150 C .$ 71, 150 D. $70,650
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $
1,650, property taxes of $6,000, and title insurance of $500. The $6,000 in property
taxes includes $4,000 in back taxes paid by Amos, Inc. on behalf of the seller and $
2,000 due for the current year after the purchase date. Amos also paid a contractor $
10,000 to tear down a dilapidated building on the property. The capitalized cos of the
land is: A. $61, 150 B. $73, 150 C.$ 71, 150 D. $70,650](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ff73515-cc03-4627-8a0d-b051aa6eda83%2Fc4ee587c-c7bb-45d1-ab1f-38188e6d5e3f%2Fnqnv3ug_processed.png&w=3840&q=75)
Transcribed Image Text:Amos, Inc. puchased land for $55,000 cash. They also incurred commissions of $
1,650, property taxes of $6,000, and title insurance of $500. The $6,000 in property
taxes includes $4,000 in back taxes paid by Amos, Inc. on behalf of the seller and $
2,000 due for the current year after the purchase date. Amos also paid a contractor $
10,000 to tear down a dilapidated building on the property. The capitalized cos of the
land is: A. $61, 150 B. $73, 150 C.$ 71, 150 D. $70,650
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