Keaubie Co. Purchased laying at a cost of 250,000 cash the property had a building on it that was demolished at a cost of $10,000 proceeds from salvaged materials from the demolition amount it to 2100 attorney fees were 3100 in the real estate brokers commission was 2450 determine the cost of land journalize the purchase

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
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Keaubie Co. Purchased laying at a cost of 250,000 cash the property had a building on it that was demolished at a cost of $10,000 proceeds from salvaged materials from the demolition amount it to 2100 attorney fees were 3100 in the real estate brokers commission was 2450 determine the cost of land journalize the purchase

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Cost of land = Purchase price + Demolished cost - Proceeds from salvaged materials + Legal fees + Brokers commission

= $250,000 + 10,000 - 2,100 + 3,100 + 2,450

= $263,450

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