Math / Numbers & Operations

QuestionMerchant Company purchased land for a building site. The costs associated with the property were: \begin{tabular}{lr} & \\ Purchase price & $\$ 190,000$ \\ Real estate commissions & 16,500 \\ Legal fees & 2,300 \\ Expenses of clearing the land & 3,500 \\ \hline \end{tabular}
What is the total recorded cost of the land?
Multiple Choice \$206,500 \$190,000 \$194,300

Studdy Solution

STEP 1

What is this asking? How much did the land really cost, considering all the expenses? Watch out! Don't just look at the purchase price!
We've got to add all those extra costs to get the true cost of the land.

STEP 2

1. List all the costs
2. Sum up the costs

STEP 3

Alright, let's break down what we're spending that money on.
We've got the initial purchase price of the land, which is $\$190,000$ .
Then, we've got the real estate commissions, which are like a finder's fee, costing us $\$16,500$ .
There are also legal fees, which are $\$2,300$ .
Finally, we have to clear the land, which costs $\$3,500$ .

STEP 4

Now, let's add all these numbers together to get the total cost.
We're doing this because each of these costs contributes to the overall cost of acquiring and preparing the land.

STEP 5

$\$190,000 + \$16,500 + \$2,300 + \$3,500$

STEP 6

$\$190,000 + \$16,500 = \$206,500$ $\$206,500 + \$2,300 = \$208,800$ $\$208,800 + \$3,500 = \$212,300$

STEP 7

So, after adding everything up, our total recorded cost is $\$212,300$ .

STEP 8

The total recorded cost of the land is $\$212,300$ .

Was this helpful?

Studdy Solution

STEP 1

What is this asking? How much did the land really cost, considering all the expenses? Watch out! Don't just look at the purchase price!
We've got to add all those extra costs to get the true cost of the land.

STEP 2

1. List all the costs
2. Sum up the costs

STEP 3

STEP 4

Now, let's add all these numbers together to get the total cost.
We're doing this because each of these costs contributes to the overall cost of acquiring and preparing the land.

STEP 5

$\$190,000 + \$16,500 + \$2,300 + \$3,500$

STEP 6

$\$190,000 + \$16,500 = \$206,500$ $\$206,500 + \$2,300 = \$208,800$ $\$208,800 + \$3,500 = \$212,300$

STEP 7

So, after adding everything up, our total recorded cost is $\$212,300$ .

STEP 8

The total recorded cost of the land is $\$212,300$ .

Get Studdy

Studdy solves anything!

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

Studdy Solution

STEP 1

What is this asking? How much did the land *really* cost, considering *all* the expenses? Watch out! Don't just look at the purchase price!We've got to **add** all those extra costs to get the *true* cost of the land.

STEP 2

1. List all the costs2. Sum up the costs

STEP 3

STEP 4

Now, let's **add** all these numbers together to get the **total cost**.We're doing this because each of these costs contributes to the overall cost of acquiring and preparing the land.

STEP 5

$190,000+$16,500+$2,300+$3,500\$190,000 + \$16,500 + \$2,300 + \$3,500$190,000+$16,500+$2,300+$3,500

STEP 6

$190,000+$16,500=$206,500\$190,000 + \$16,500 = \$206,500$190,000+$16,500=$206,500 $206,500+$2,300=$208,800\$206,500 + \$2,300 = \$208,800$206,500+$2,300=$208,800 $208,800+$3,500=$212,300\$208,800 + \$3,500 = \$212,300$208,800+$3,500=$212,300

STEP 7

So, after adding everything up, our **total recorded cost** is $212,300\$212,300$212,300.

STEP 8

The total recorded cost of the land is $212,300\$212,300$212,300.

Get Studdy

Studdy solves anything!

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

What is this asking? How much did the land really cost, considering all the expenses? Watch out! Don't just look at the purchase price!
We've got to add all those extra costs to get the true cost of the land.

1. List all the costs
2. Sum up the costs

Now, let's add all these numbers together to get the total cost.
We're doing this because each of these costs contributes to the overall cost of acquiring and preparing the land.

$\$190,000 + \$16,500 + \$2,300 + \$3,500$

$\$190,000 + \$16,500 = \$206,500$ $\$206,500 + \$2,300 = \$208,800$ $\$208,800 + \$3,500 = \$212,300$

So, after adding everything up, our total recorded cost is $\$212,300$ .

The total recorded cost of the land is $\$212,300$ .