A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and title insurance of $1,000 were also incurred. The $5,500 in property taxes includes $4,200 in back taxes paid by the company on behalf of the seller and $1,300 due for the current year after the purchase date. For what amount should the company record the land?

A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and title insurance of $1,000 were also incurred. The $5,500 in property taxes includes $4,200 in back taxes paid by the company on behalf of the seller and $1,300 due for the current year after the purchase date. For what amount should the company record the land?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5MC: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to...

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