Ogden Self Storage purchased land, paying $175,000 cash as a down payment and signing a $155,000 note payable for the balance. Ogden also had to pay delinquent property tax of $4,500, title insurance costing $5,500, and $5,000 to level the land and remove an unwanted building. The company paid $55,000 to add soil for the foundation and then constructed an office building at a cost of $1,000,000. It also paid $49,000 for a fence around the property, $14,000 for the company sign near the property entrance, and $11,000 for lighting of the grounds. Read the requirement. The cost of the land is

Ogden Self Storage purchased land, paying $175,000 cash as a down payment and signing a $155,000 note payable for the balance. Ogden also had to pay delinquent property tax of $4,500, title insurance costing $5,500, and $5,000 to level the land and remove an unwanted building. The company paid $55,000 to add soil for the foundation and then constructed an office building at a cost of $1,000,000. It also paid $49,000 for a fence around the property, $14,000 for the company sign near the property entrance, and $11,000 for lighting of the grounds. Read the requirement. The cost of the land is

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 17P

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