The following costs were incurred by Shumway Company in purchasing land: cash price, $84,000; removal of old building, $5,200; legal fees, $3,000; clearing and grading, $3,500; installation of fence, $3,400.

Question

(a) What is the cost of the land?

(b) What is the cost of the land improvements?

Plz help. I have exam coming on monday! THANKS.

Answer 1

Land: 84,000 + 3,000 = ?

Improvements: 5,200 + 3,500 + 3.400 = ?

Check your text to make sure that legal fees are included in the purchase of the land.