1 answer

Sheridan Company acquires land for $71000 cash. Additional costs are as follows. Removal of shed $400...

Question:

Sheridan Company acquires land for $71000 cash. Additional costs are as follows.

Removal of shed

$400

Filling and grading

1800

Salvage value of lumber of shed

170

Broker commission

1330

Paving of parking lot

12000

Closing costs

580

Sheridan will record the acquisition cost of the land as

$75280.

$74940.

$71000.

$72910.


Answers

Acquisition cost of the land

= 71,000+400+1800-170+1330+580

= 74,940.

Option B is the answer

Comment if you face any issues
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