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Acorn company purchased land for $100,000 cash. In addition, Acom paid real estate brokers' commission of $5,000. To make the land suitable for use, Acorn
Acorn company purchased land for $100,000 cash. In addition, Acom paid real estate brokers' commission of $5,000. To make the land suitable for use, Acorn spent $6,000 to demolish an old building on the land. Proceeds from salvage of the demolished building were $1,500. Under the historical cost principle, the cost of land is O a. $112,500. O b. $100,000. O c. $111,000. O d. $109,500
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