Respuesta :
Answer:
$ 46,790 amount should be recorded as the cost of the land.
Explanation:
As per accounting standards all directly arributable costs are included in cost of asset. These cost includes purchase price, financial charges and professional fee (closing costs), removing items and restoring site cost etc.
So the cost of land will be sum of 33,200 + 2,220 + 11,370 that is $46,790.
Answer:
$46,790
Explanation:
Given;
cost of purchase = $33,200
closing cost = $2,220
Cost for removal of old building = $11,370
Assets are recognized at the cost incurred in making the assets available for use. The closing cost and cost incurred in removing the old building are part of the cost incurred in making the land available for use and as such would be included as part of the cost of the land. Therefore;
Cost of land = $33,200 + $2,220 + $11,370
= $46,790
