Answer:
The amount FVI should record as the cost of the land=$592,600
Explanation:
Given Data:
Land cost=$520,000
broker's commission=$32,000
title insurance=$2,200
Miscellaneous closing costs=$6,400
Demolition cost=$32,000
Required:
The amount FVI should record as the cost of the land=?
Solution:
Total Cost=Land cost+broker's commission+title insurance+ Miscellaneous closing costs+Demolition cost
Total Cost=$520,000+$32,000+$2,200+$6,400+$32,000
Total cost=$592,600
The amount FVI should record as the cost of the land=$592,600
