Determine the amount to be reported as the cost of the land


On March 1,2014 Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $8,600 and salvage materials were sold for $1,700. Additional Expenditure before construction began included $1,100 attorney's fee for work concerning the land purchase, $ 5,000 real estate broker's fee, $7,800 architect's fee, and $14,000 to put in driveways and a parking lot.

Determine the amount to be reported as the cost of the land?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Determine the amount to be reported as the cost of the land
Reference No:- TGS02587564

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)