Reference no: EM132368116
Question
On February 4, 2018, Ten Company purchased 20 acres of land from Seller Company with the intent to construct a new manufacturing facility. The land had a appraised value of $500,000 on the purchase date. Ten Company incurred the following cash expenditures.
Purchase price paid to Seller Company $480,000
Fee to geologist to ensure land is stable for construction 3,000
Survey fee to verify acreage 1.000
Closing costs paid to title company 9,000
Property taxes for February 4 - December 31, 2018 1,500
Addition of roads and parking lots to service new facility 80,000
Legal fees to negotiate the transaction 5,000
Excavation costs to prepare site for construction 45,000
Determine the acquisition cost of the land.
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