urphy Winery purchases land for axesdu Murphy Winery assume

urphy Winery purchases land for axes-du . Murphy Winery assumes ue on theland The title and legal fees totalled $2,750 $2,500 in rates and t Murphy Winery has the land graded for $5,000 and fenced for $20,000. What amount does Murphy Winery record as the cost for the land? $200,000 b. $230,250 210,250 d. $202,750

Solution

Solution: $210,250

Working

$200,000 + $2,750 (Title and legal fees totalled) + $2500 (Rates and taxes) + $5,000 (land levelled)

Cost of levelled and fenced will be treated as land improvement