Answer:
D. $460,500
Explanation:
Given that
Cost of parcel of land = 450000
Legal fees = 3000
Broker's fees = 7500
Therefore,
Amount recorded as cost of parcel of land is
Cost of parcel of land + legal fees + brokers fee
= 450000 + 3000 + 7500
= $460,500
When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.
Answer:
D. $460,500
Explanation:
From the question, we have the following values
Purchased of parcel of land = $450,000
Attorneys fees = $3,000
Broker's fees = $7,500
To evaluate this, we need to add every money being spent to purchased the parcel of land
Which we have as
Purchased of parcel of land + attorneys fees + brokers fee which which we have as
= 450000 + 3000 + 7500
= $460,500
Because for one to buy a land, fees been spent on the process of buying the land will be added which will give the total cost of the land.
