Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Sale price of the land $400,000 Sale of salvaged parts already on land $20,000 Demolition of the old building $30,000 Ground breaking ceremony (food and supplies) $1,500 Land preparation and leveling $7,500What amount should be recorded for the purchase of the land?

Question

Business

Harold Ball

24 January, 20:53

Cowboy Development incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Sale price of the land $400,000 Sale of salvaged parts already on land $20,000 Demolition of the old building $30,000 Ground breaking ceremony (food and supplies) $1,500 Land preparation and leveling $7,500What amount should be recorded for the purchase of the land?

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Answers (1)

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Matias Benjamin · Answer 1

The amount should be recorded for the purchase of the land is $417500.

Explanation:

amount of land = sale price of the land - sale of salvaged parts + bemolition of the old buiding + land preparation and leveling

= $400000 - $20000 + $30000 + $7500

= $417500

Therefore, The amount should be recorded for the purchase of the land is $417500.