Question

Splish brothers inc. purchased land at a price of $60,480. closing costs were $3,024. An old barn was removed at a cost of $6,272. What amount should be recorded a the cost of the land?

Answer 1

Answer:

$69, 776

Explanation:

In recording the value of an asset, accountants consider the price paid for the assets plus all the associated costs. The amount to be recorded is the aggregate of all relevant expenses.

For Splish brothers, the amount to be recorder will include

Buying price for the land $60,480

Closing cost $ 3024

cost of removing the old burn $6,272

the total cost will be

=$60,480 + 3,024, + $ 6, 272

= $69, 776