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

question 69

Multiple Choice

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

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Definitions:

Contractual Capacity

The legal ability of a person or entity to enter into a binding contract, which generally requires them to be of a certain age and have a sound mind.

Informed Consent

A process by which a person voluntary confirms their willingness to participate in a particular activity, after having been informed of all the risks, benefits, and alternatives.

Legal Object

A purpose that does not violate a statute or public policy.

Coherence

The quality of being logical, consistent, and forming a unified whole.