Answer: Cost of Land =71990
Working notes for the above answer is as under
| Particular | Amount in $ |
| cash price | 55410 |
| accrued taxes | 5220 |
| attorney’s fees | 2940 |
| real estate broker’s commission | 3450 |
| clearing and grading | 4970 |
| Total | 71990 |
Explaination
Legal Charges
The cost of land includes, real estate commissions, legal fees, bank fees, title search fees, and similar expenses
Other Charges
. To make the land usable it may need to be cleared of trees, drained and filled, graded to remove small hills and depressions, and landscaped. In addition, old buildings may need to be demolished before the company can use the land. Such demolition expenses are considered part of the land’s cost.
