Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500 Past due taxes 650 Title search 275 Cost of razing old building 1300 Interest (incurred after productive operations had begun) 160 Proceeds from salvage of old building 1875 What is the capitalizable cost of the land?

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A:

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.