Ramirez Company Made the Following Payments Related to a Land $\quad$

question 38

Multiple Choice

Ramirez Company made the following payments related to a land acquisition:
Purchase price $\quad$ $\quad$ $\quad$ $\quad$ $7,500
Past due taxes $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 650
Title search $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 275
Cost of razing old building $\quad$ 1300
Interest incurred after productive operations had begun) $\quad$ 160
Proceeds from salvage of old building $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 1875
What is the capitalizable cost of the land?

• A) $9,725
• B) $8,010
• C) $7,850
• D) $7,500

---

Definitions:

Fort Pillow

The site of the Fort Pillow massacre during the American Civil War, where Confederate forces killed numerous African American Union soldiers after they had surrendered.

Confederate Army

The military land forces of the Confederate States of America during the American Civil War, fighting against the Union.

Brutal Treatment

Describes the harsh and inhumane conditions or actions imposed on individuals, particularly slaves or workers, by those in power or authority.