COST OF A FIXED ASSET Borges, Inc., recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $80,000; real estate commissions, $4,800; delinquent property taxes, $1,500; closing costs, $3,300 clearing and grading of the land, $8,100.

Required:

Determine the cost of the land.

Cornerstone Exercise