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Land illustration - $1,000 and the real estate broker’s...

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Land illustration Illustration: Assume that Hayes Manufacturing Company acquires real estate at a cash cost of $100,000. The property contains an old warehouse that is razed at a net cost of $6,000 ($7,500 in costs less $1,500 proceeds from salvaged materials). Additional expenditures are the attorney’s fee,
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Unformatted text preview: $1,000, and the real estate broker’s commission, $8,000. Required: Determine the amount to be reported as the cost of the land. Answer: 100,000 + 6,000 + 1,000 + 8,000 = 115,000...
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