Hull Company acquires land for $86,000 cash. Additional costs are as follows: Re

Question

Hull Company acquires land for $86,000 cash. Additional costs are as follows:

Removal of shed                                                      $    300
Filling and grading                                                       1,500
Salvage value of lumber of shed                                  120
Broker commission                                                  1,130
Paving of parking lot                                                  10,000
Closing costs                                                                 560

Hull will record the acquisition cost of the land as

Explanation / Answer

Acquisition cost of land = $86000

Removal of shed = $ 300

Filling and grading =1,500

Salvage value of lumber of shed = ( 120)

Broker commission                                                  1,130

Paving of parking lot                                                  10,000

Closing costs                                                                 560

acquisition cost of the land as = 99370

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