Business
Business, 21.04.2020 21:59, miamassimino

McCoy's Fish House purchases a tract of land and an existing building for $990,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,900. The company also pays $13,800 in property taxes, which includes $8,900 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,900 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $49,500 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $4,800 and pays an additional $10,900 to level the land. Required: Determine the amount McCoy’s Fish House should record as the cost of the land

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McCoy's Fish House purchases a tract of land and an existing building for $990,000. The company plan...

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