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Merchant Company Purchased Property for a Building Site What Portion of These Costs Should Be Allocated to the Associated

question 27

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Merchant Company purchased property for a building site. The costs associated with the property were:  Purchase price $185,000 Real estate commissions 15,000 Legal fees 700 Expenses of clearing the land 2,000 Expenses to remove old building 4,000\begin{array} { | l | r | } \hline \text { Purchase price } & \$ 185,000 \\\hline \text { Real estate commissions } & 15,000 \\\hline \text { Legal fees } & 700 \\\hline \text { Expenses of clearing the land } & 2,000 \\\hline \text { Expenses to remove old building } & 4,000 \\\hline\end{array} What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

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Definitions:

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The 32nd President of the United States, serving from 1933 to 1945, known for his leadership during the Great Depression and World War II.

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The function or position that a country plays in the international community, involving diplomacy, trade, aid, and other global interactions.

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