Gagner Clinic Purchases Land for $130,000 Cash

question 262

Multiple Choice

Gagner Clinic purchases land for $130,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?

• A) $132,200
• B) $130,000
• C) $134,700
• D) $132,500

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Definitions:

Collecting

The process of gathering or accumulating items or the act of receiving payments owed to a business.

Classifying

The process of organizing financial information into categories for analysis, reporting, and decision making.

Summarizing

The process of presenting a concise overview or summary of specific information or data, such as the key points of a financial report.

Reporting

The process of organizing and presenting data, often financial, to provide insights into the performance of an entity.