A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase price of the land $ 400,000 Sale of salvaged parts already on land $ 20,000 Demolition of the old building $ 30,000 Ground-breaking ceremony (food and supplies) $ 1,500 Land preparation and leveling $ 7,500 What amount should be recorded for the purchase of the land

Respuesta :

Answer:

$417,500

Explanation:

Items                                                          Amount

Sale price of the land                                $400,000  

Sale of salvaged parts already on land  -$20000  

Demolition of the old building                  $30,000  

Land preparation and leveling                 $7,500

Amount of Purchase of Land                  $417,500