Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land? a. $134,700 b. $132,500 c. $132,200 d. $130,000
Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land? a. $134,700 b. $132,500 c. $132,200 d. $130,000
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 60P
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Gagner clinic purchases land solve this question accounting
Transcribed Image Text:Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in
property taxes due on the land. The title and attorney fees totaled $1,000. The clinic
has the land graded for $2,200. What amount does Gagner Clinic record as the cost
for the land?
a. $134,700
b. $132,500
c. $132,200
d. $130,000
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