Period subsequent to the purchase date


Vijay Inc. purchased a 3-acre tract of land for a building site for $320,000. On the land was a building with an appraised value of $120,000. The company demolished the old building at a cost of $12,000, but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract was $500. Property taxes paid were $3,000, of which $250 covered the period subsequent to the purchase date. The capitalized cost of the land is:

a) $336,400.

b) $336,150.

c) $334,650.

d) $201,150.

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Accounting Basics: Period subsequent to the purchase date
Reference No:- TGS087749

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