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Gagner Clinic Purchases Land for $175000 Cash

question 224

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Gagner Clinic purchases land for $175000 cash. The clinic assumes $1500 in property taxes due on the land. The title and attorney fees totaled $1000. The clinic has the land graded for $2200. What amount does Gagner Clinic record as the cost for the land?


Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company.

Consolidated Inventories

Inventories of a consolidated entity that are reported as a combined total from all subsidiaries and the parent company.

Date of Acquisition

The specific date on which control of assets is transferred from the seller to the buyer, marking the point at which the buyer assumes ownership and accounting for the assets.

Common Stock

A type of equity security that represents ownership in a corporation, carrying voting rights and potential for dividends.

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