Land is purchased for $ 200 comma 000. back taxes paid by the purchaser were $ 7 comma 400; total costs to demolish an existing building were $ 11 comma 000 and the cost to clear the land was $ 21 comma 000. the cost of paving the parking lot was $ 8 comma 200. the cost of land is and the cost of land improvements is

a). total cost of land=$207,400

b). total cost of land improvements=$40,200

Explanation:

a).

The total cost of land can be expressed as follows;

total cost of land=purchase cost+back taxes paid by the purchaser

where;

purchase cost=$200,000

back taxes paid by the purchaser=$7,400

replacing;

total cost of land=200,000+7,400=$207,400

total cost of land=$207,400

b).

The total cost of land improvements can be expressed as follows;

total cost of land improvements=demolishing costs+land clearance costs+paving parking lot costs

where;

demolishing costs=$11,000

land clearance costs=$21,000

paving parking lot costs=$8,200

replacing;

total cost of land improvements=(11,000+21,000+8,200)=$40,200

total cost of land improvements=$40,200

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