Question

Sheffield Inc. purchased land at a price of $27,300. Closing costs were $2,310. An old building was removed at a cost of $15,090. What amount should be recorded as the cost of the land?

Answer 1

Answer:

$44,700

Explanation:

The computation of the cost of the land is shown below:

= Purchase value of the land + closing cost + removal cost of old building

= $27,300 + $2,310 + $15,090

= $44,700

Since we added the all cost as it related to the cost of the land. So that the accurate amount can come. Hence all the cost are recorded to find out the cost of the land.