Question

These expenditures were incurred by Dunston Company in purchasing land: cash price $60,000; accrued taxes $5,000; attorney’s fees $2,100; real estate broker’s commission $3,300; and clearing and grading $3,500.

What is the cost of the land?

Answer 1

CALCULATION OF THE COST OF LAND
PARTICULARS	AMOUNT
Cash Price of the land	$                      60,000
Add: Accurd Taxes	$                        5,000
Add: Attorney's Fees	$                        2,100
Add: Real State Broker's Commission	$                        3,300
Total	$                      70,400
Answer = Total Cost of Land = $ 70,400
Note: Clearing and grading expenses are not part of the land cost so not taken this