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A company purchased land for 90,000 cas. real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old buidling on the land
A company purchased land for 90,000 cas. real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old buidling on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at
a. $107,000
b. $90,000
c. $70,000
d. $102,000
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