Question

Based on the following data, what is the cost of the land?

Land purchase price $196,022
Broker's commission 16,158
Payment for demolition and removal of existing building 4,993
Cash received from sale of materials salvaged from demolished building 2,645 $

Answer 1

Answer:

cost = 214528

Explanation:

the cost of the asset includes

. purchase price

. directly attributable cost and

. certain future costs

in the given scenario

purchase price                           =  196022

direct. attributable cost :

commission cost                        =   16158

net removal cost (4993-2645)  =   2348

total cost of land                        =   214528