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27 December, 09:06

Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Elway has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Elway record as the cost for the land? a. $88,200b. $100,700c. $90,700d. $85,000

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  1. 27 December, 09:10
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    c. $90,700

    Explanation:

    The computation of the cost of the land is shown below:

    = Purchase cost of land + property taxes + attorney fees + land graded cost

    = $85,000 + $2,500 + $1,000 + $2,200

    = $90,700

    We added the property taxes, attorney fees, and the land graded cost to the purchase cost of the land. We do not include the parking lot expenses
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Home » Business » Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Elway has the land graded for $2,200. They paid $10,000 for paving of a parking lot.
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