Ask Question
15 November, 14:20

Wildhorse Co, purchases land for $155000 cash, Wildhorse assumes $4900 in property taxes due on the land. The ttle and attorney fees totaled $1600. Wildhorse has the land graded for $4200. They paid $1 Bo00 for paving of a parking lot. What amount does Wildhorse record as the cost for the land? A. $160800. B. $155000, C. $184700. D. $165700

+5
Answers (1)
  1. 15 November, 14:32
    0
    The correct answer is D. $165700.

    Explanation:

    This question requires us to tell the cost of land that will be reported by Wildhorse Co. As per accounting standards all directly attributable expenses are include in the cost of an asset. So the following amounts will be included in the cost of the asset

    Cost of the land = Purchase price + Property tax + Attorney fees + land Grad

    = 155,000 + 4,900 + 1,600 + 4,200

    = $ 165,700
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Wildhorse Co, purchases land for $155000 cash, Wildhorse assumes $4900 in property taxes due on the land. The ttle and attorney fees ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers