August Co. bought land for a warehouse for $70,000. This land contains an old garage that is removed at a cost of $5,000. Closing costs include legal fees of $1,000 and brokerage fees of $2,000. The cost of the land will be

August Co. bought land for a warehouse for $70,000. This land contains an old garage that is removed at a cost of $5,000. Closing costs include legal fees of $1,000 and brokerage fees of $2,000. The cost of the land will be

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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Question

TB 09-130 August Co. bought land for a warehouse for
August Co. bought land for a warehouse for $70,000. This land contains an old garage that is removed at a cost of $5,000.
Closing costs include legal fees of $1,000 and brokerage fees of $ 2,000. The cost of the land will be
Multiple Choice
$75,000
$73,000
^^^
x

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