Grossnickle corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. today,
1 answer:
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Answer:
$206700.
Explanation:
Given: Purchase price= $185000.
Real estate commissions= $15000.
Legal fees= $700.
Expense of clearing land= $2000.
Expense to remove old building= $4000.
Now, calculating the expense allocated to the cost of land.
As given property is purchsed for a building site and expense are to clear land for new building.
⇒ Expense allocated to the cost of land=
⇒ Expense allocated to the cost of land=
∴ Expense allocated to the cost of land= $206700.
Hence, $206700 should be allocated to the cost of the land.