A plot of land was purchased for $120,000 which had $10,000 of past due property taxes on it.Sales taxes on the purchase were $1,400 and the title search cost $500.The capitalized cost of the land was:
A)$120,000
B)$121,900
C)$130,000
D)$131,900

Question

Quizplus · Accepted Answer

To calculate the capitalized cost of the land, we need to add up the purchase price, past due property taxes, sales taxes, and title search cost.
$120,000 (purchase price) + $10,000 (past due property taxes) + $1,400 (sales taxes) + $500 (title search cost) = $131,900
Therefore, the answer is D) $131,900.

A Plot of Land Was Purchased for $120,000 Which Had