Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 2, Problem 11PC

Costs to Be Included in Historical Cost Valuation. At a cost of $200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys $7,500 to conduct a title search and to prepare the required legal documents for the purchase. State real estate transfer taxes totaled $2,500. Building permits totaled $1,200. Compute the acquisition cost of the land.

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$200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys$7,500 to conduct a title search and to prepare the required legal documents for the purchase.State real estate transfer taxes totaled $2,500. Building permits totaled $1,200. Computethe acquisition cost of the land.
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