Question

Windsor Inc. purchased land at a price of $34,900. Closing costs were $2,070. An old building was removed at a cost of $14,020. What amount should be recorded as the cost of the land

Answer 1

the amount that recorded as the cost of the land is $50,990

Step-by-step explanation:

The computation of the amount that recorded as the cost of the land is shown below

= Purchase price of the land + closing cost + removing cost of an old building

= $34,900 + $2,070 + $14,020

= $50,990

Hence, the amount that recorded as the cost of the land is $50,990

We simply applied the above formula so that the correct value could come

And, the same is to be considered