A Real Estate question

A company purchased land for $90,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at
a) $97,000
b) $90,000
c) $95,000
d) $102,000
anm_425
Asked Nov 19, 2009
Edited Nov 19, 2009
non, l'achat et vente d'un terrain n'ait pas une addition.
you cannot use these "cost principle", it does not work like that.
d'abord les prévisions sont secrêtes, donc personne ne le sait (seul un procès peut les obliger à montrer leurs comptes).
first, the secrets of the entreprise do not allow us to know 'how much ?'
second only a trail could show the reals prices - the accounts are private.
ensuite, tout dépends qui paye.
third a cost means that someone pays but you forget to tell us who.
un terrain n'est pas égale à une somme mais à une valeur.
a value is the cost of land and not a) b) c) or d).
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Answered Nov 21, 2009
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I believe that would be $102K.
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