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A corporation purchased a piece of land for $50,000. The corporation paid attorney's fees of $5,000 and brokers' commissions of $3,000 in connection with the purchase. An old building on the land was torn down at a cost of $1,500, and proceeds from the scrap were $500. The corporation also assumes $6,000 of property taxes on the land owed by the previous owner. How much is the total cost of the land

Answer :

To find the total cost of the land is $65,000.

What is a corporation?

  • A corporation is a business or other type of organization that has been established by a group of people and has been given legal status as a single juridical person by virtue of a treaty, statute, or other act that has been passed by a state or supranational organization.
  • It can be a private or public law legal entity that is recognized in law for specific purposes.
  • 10 Early corporations were created with a charter (i.e. by an ad hoc act granted by a monarch or passed by a parliament or legislature).
  • The majority of governments currently permit the registration of new corporations.

What are attorney fees?

  • Attorney's fee is a word used mostly in the United States to describe payment for legal services rendered by an attorney on behalf of a client, whether in or out of court.
  • It could be a flat-rate, hourly, or contingent charge.

Solution -

To find the total cost of the last, add all the numbers as follows:

[tex]50000+5000+3000+1500+6000 = 65,500[/tex]

Subtract proceeds from the scalp = [tex]65,500 - 500 = 65,000[/tex]

Therefore, to find the total cost of the land is $65,000.

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