Farah Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $75,000; broker's fees, $6,000; title search and other legal fees, $4,000; demolition of an old building on the property, $5,700; accumulated property taxes, $1,200; digging foundation for the road, $6,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500. Required: Calculate the cost of the Land??
Farah Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $75,000; broker's fees, $6,000; title search and other legal fees, $4,000; demolition of an old building on the property, $5,700; accumulated property taxes, $1,200; digging foundation for the road, $6,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500. Required: Calculate the cost of the Land??
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I know the answer but tell me why we don’t include the 6,000 in the cost of the land, because i answered it wrong and take your time don’t reject the question, thank you.
![Farah Corporation purchased land adjacent to its plant to improve access for trucks
making deliveries. Expenditures incurred in purchasing the land were as follows:
purchase price, $75,000; broker's fees, $6,000; title search and other legal fees,
$4,000; demolition of an old building on the property, $5,700; accumulated property
taxes, $1,200; digging foundation for the road, $6,000; laying and paving driveway,
$25,000; lighting $7,500; signs, $1,500.
Required: Calculate the cost of the Land??](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1b56f47-54e1-44be-9dec-cfa19be5abcb%2F5e4546fd-bfd8-4d76-85f7-d61315ec2895%2F5hjn92m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Farah Corporation purchased land adjacent to its plant to improve access for trucks
making deliveries. Expenditures incurred in purchasing the land were as follows:
purchase price, $75,000; broker's fees, $6,000; title search and other legal fees,
$4,000; demolition of an old building on the property, $5,700; accumulated property
taxes, $1,200; digging foundation for the road, $6,000; laying and paving driveway,
$25,000; lighting $7,500; signs, $1,500.
Required: Calculate the cost of the Land??
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