The Green shingle purchased a parcel of land 6yrs ago for $299,500. at that time

Question

The Green shingle purchased a parcel of land 6yrs ago for $299,500. at that time, the firm invested $64,000 grading the site so that it would be usable. since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $28,000 a year. the rental lease is expiring. the current value of the land is $347,500. the firm has no loans or mortgages secured by the property. what value should be included in the initial cost of the hotel project for the use of this land?
A. $0
B. $299,500
C. $347,500
D. $363,500
E. $411,500

Explanation / Answer

nitial cost of the hotel project for the use of this land = Purchase cost + grding cost = 299500+64000 = $363500........................Ans (D)

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