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Bordewick, Inc. purchased land and incurred the following costs: Purchase price $500,000, Clearing and grading costs...

Bordewick, Inc. purchased land and incurred the following costs: Purchase price $500,000, Clearing and grading costs $50,000, Demolition costs on old building $12,500, Broker fees to execute purchase $10,000, Cost of a new parking lot $25,000. What is the cost recorded for the land account?
  • A. $597,500
  • B. $572,500
  • C. $562,500
  • D. $550,000
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Answer #1
Initial Cost of land
Particulars Amount
Purchase price $        500,000
Demolition of old building $           12,500
Legal Fees for title of investigation $           10,000
Cleraing and grading cost $           50,000
Total cost of land $        572,500
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