Conan Corporation purchased land and contracted with a developer to construct an office building. Conan Corporation also engaged other contractors for fencing, paving, lighting, and landscaping.
Using the following data, calculate the cost of the land, the building, and the land improvements.
Purchased land for $100,000.
Paid $2,000 for seller’s back property taxes.
Paid a builder $225,000 to design and build the office building.
Paid an excavation company $6,000 to grade and clear the land to make it suitable for building purposes.
Paid a landscaping company $6,000 for trees and shrubs.
Paid a lighting contractor $10,000 for outside lighting around the parking area and sidewalks.
Paid $15,000 to have the parking lot paved.
Paid a fence builder $12,000 to construct a security fence around the property